Global mining leader BHP (NYSE:BHP) has temporarily abandoned its pursuit of Anglo American (OTC:AAUKF), one of the largest M&A attempts in 2024.

The Financial Times reported that the Australian miner now views a deal as "too expensive," given Anglo's share price surge in recent months – as London-listed company shares rose 26% in the last 12 months, owing to restructuring efforts and favorable investor sentiment.

Anglo American responded with a swift restructuring, selling its Australian coal assets for $3.8 billion, spinning off its South African platinum operations, and working on Brazilian nickel asset divestments.

"If BHP were bidding what they thought was fair value, it is difficult to see why they would bid more now," remarked George Cheveley, fund manager at Ninety One.

BHP's interest in Anglo American stems from the rising demand for copper, a critical metal in the energy transition and digital infrastructure. The miner has projected that copper demand will increase sixfold by 2050, driven by electrification trends and the explosive growth of data centers. Data centers, in particular, are emerging as significant copper consumers, requiring the metal for power networks, cooling systems, and circuit boards.

An internal analysis estimated that the copper used for data centers will grow from 500,000 tons annually to 3 million tons by 2050.

"Digital demand," as BHP describes it, includes copper use in data center construction, electricity generation, and power delivery infrastructure. The miner also anticipates global electricity consumption by data centers will rise from 2% of total electricity demand today to 9% by mid-century.

Still, regardless of the firm's optimism about the metal, CEO Mike Henry has set tight criteria for further deals, clarifying that they have to create value and align with the company's long-term goals.

"There is no transaction that is a ‘must do' for BHP," he noted.

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