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Message: Anglo American Rejects BHP Offer. These Other Buyers Could Now Emerge.

https://finance.yahoo.com/m/dce8c3aa-33dc-3957-a2ca-9eceb0f537f5/anglo-american-rejects-bhp.html?siteid=yhoof2&yptr=yahoo

Depending on market conditions, major producers (and some mid-caps) go on a feeding frenzy. In the last few decades, they've focused on growth via acquisition over relying on their own exploration efforts. When metals prices rise, such as now, acquisitions boom, and the trend lasts as long as metals prices remain high - the same for some other commodities.

Yesterday's news about BHP wanting to acquire Anglo may be a sign that mining companies are again in the grip of such a cycle. If so, the usual summer doldrums regarding mining news may not be typical.

Let's see if BHP raises its bid or gets outbid by another.  In any case, I think we wll be seeing a lot more of this. 

Is it meaningful for LBSR at this point? Yes, because any news that shines a bright light on the mining sector will attract more retail investors to mining stocks at all levels. 

 

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