Anglo American has rejected BHP’s request to extend its offer deadline on a £39bn merger deal.

The move comes after the British mining firm had rejected previous bids of £31.1bn, £34bn and £38.6bn in the weeks since the end of April.

BHP said that the offer extension was aimed at easing concerns about its plans for Anglo American’s business in South Africa, ahead of elections in the country.

As a result of the offer and extension rejection, BHP now has to change its offer before 5pm today to continue the potential merger.

After rejecting BHP’s third offer, Anglo American stated that it plans to break up its own business, by either selling or spinning off parts of the company, including its De Beers diamond operation or its platinum division.

The firm said that should it move these operations from the company, it would focus on areas including copper, crop nutrients and premium iron ore.

Prior to the extension being rejected, investment analyst at AJ Bell, Dan Coatsworth, said: "Like a desperate student running out of time to hit a deadline, BHP is asking for yet another extension to the cut-off for making a formal bid for Anglo American.

"The company says it has made significant concessions to help get the deal across the line – particularly relating to the sensitive situation in South Africa which has a vested interest in the transaction. With the put up or shut up point being hit today, there is precious little time to waste if the takeover is going to happen."

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