Australian miner BHP Group has withdrawn from the £38.6bn takeover pursuit of rival UK-based mining company Anglo American.

The move comes after Anglo American’s board unanimously rejected the third “unsolicited, non-binding and highly conditional” takeover proposal from BHP. The board cited that the latest offer also had the same highly complex structure as that of the earlier proposals.

According to BHP, its revised proposal would have provided immediate value for the shareholders of Anglo American and enabled them to gain from the long-term value generated by the proposed merger.

BHP CEO Mike Henry said: “While we believed that our proposal for Anglo American was a compelling opportunity to effectively grow the pie of value for both sets of shareholders, we were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost and, 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 made the third all-share offer with an increased number of its shares than its first and second proposals for Anglo American shareholders.

As per the latest proposal, shareholders of Anglo American were offered 0.886 BHP shares for each ordinary share they own in the former. They were also expected to get ordinary shares in each of Anglo American Platinum and Kumba Iron Ore.

The final bid represented a total value of £31.11 per Anglo American share.

Following the rejection of the third offer, Anglo American granted BHP one-week extension until 29 May 2024 to submit a binding proposal.

Anglo American chairman Stuart Chambers said: “Anglo American has set out a clear pathway to accelerate delivery of its strategy and to unlock significant value for its shareholders.

“Our shareholders will benefit from value transparency and undiluted exposure to a simpler portfolio of world class assets, consistently stronger operational performance, and highly attractive growth in copper, premium iron ore and crop nutrients.”