02:20 PM EDT, 05/29/2024 (MT Newswires) -- Anglo American said Wednesday that BHP Group ( BHP ) failed to address the board's fundamental concerns in pursuing a merger.

BHP had a one-week extension until Wednesday to negotiate on the $49 billion deal with Anglo American, but the parties were unable to reach an agreement.

At issue was a requirement for Anglo American to demerge its shareholdings in Anglo American Platinum and Kumba Iron Ore to existing shareholders prior to the takeover.

Anglo American said in a statement that the requirement to demerge its publicly listed companies would raise the need for additional material approvals and "disproportionately impact" shareholder value.

Anglo American's statement came after BHP proposed a range of "socioeconomic measures" to support approvals of the transaction in South Africa. The company sought additional time for "further engagement on its proposal," but was rebuffed, prompting it to abandon the merger altogether.

"Despite seeking to engage constructively and numerous requests, we were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive," BHP Chief Executive Mike Henry said in a statement announcing the company would not be making a firm offer.

Meanwhile, Anglo American Chairman Stuart Chambers told shareholders after BHP dropped its bid that the company had a "clear pathway" to " accelerate value delivery" for investors.

Under UK law, BHP can no longer pursue a merger with London-listed Anglo American for a period of at least six months.

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