Anglo American has rejected a second acquisition bid by Australian mining firm, BHP, for £34bn.

BHP made a bid for the British multinational mining firm for £31bn last month, but Anglo American said this offer "significantly undervalues Anglo American and its future prospects".

As part of the new deal, Anglo American would be required to complete two separate demergers of its entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders.

It added that the latest proposal "continues to contemplate a structure that the board believes is highly unattractive for Anglo American shareholders, given the uncertainty and complexity inherit".

The British multinational firm owns mines in countries including Chile, Brazil, South Africa, and Australia.

Should the deal go ahead, it could create a group that would own around 10% of the global output of copper, which is now one of the world's most sought-after metals.

Chairman at Anglo America, Stuart Chambers, said: "The latest proposal from BHP again fails to recognise the value inherent in Anglo American. Anglo American shareholders are well positioned to benefit from increasing demand from future enabling products while the increasing capital intensity to bring greenfield supply online makes proven assets with world class resource endowments ever more attractive.

"The Anglo American team is focused on delivering against its strategic priorities of operational excellence, portfolio simplification and growth and is set to accelerate delivery in order to unlock this inherent value.

"The BHP proposal also continues to have a highly unattractive structure. This leaves Anglo American, its shareholders and stakeholders disproportionately at risk from the substantial uncertainty and execution risk created by the proposed inter-conditional execution of two demergers and a takeover."

Under takeover rules, BHP must state its intention to make an offer for Anglo American by 22 May or announce that it does not intend to make an offer.

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