The BHP Group Ltd (ASX: BHP) share price is lifting amid news OZ Minerals Limited (ASX: OZL) turned down a takeover bid posted by the iron ore giant.
As The Motley Fool reported earlier, the $25 per share cash offer represented a 32.1% premium on OZ Minerals' previous close. It also valued the copper miner at around $8.3 billion.
However, the acquisition target's board found the bid undervalued the company and refused to recommend it to shareholders.
After opening slightly lower at $38.80, the BHP share price rose to trade at $39.09 in early morning trade. That's 0.72% higher than it was at Friday's close.
Let's take a closer look at what's going on with the S&P/ASX 200 Index (ASX: XJO) materials shares on Monday.
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BHP share price lifts despite rejected takeover bid
The BHP share price is in the green this morning. Its gains come despite the company's CEO Mike Henry saying he's "disappointed" OZ Minerals' board refused to entertain its "compelling" bid. Henry continued:
Our proposal represents compelling value and certainty for OZ Minerals shareholders in the face of a deteriorating external environment and increased OZL operational and growth related funding challenges.
OZ Minerals CEO and managing director Andrew Cole said BHP's bid didn't recognise the company's "unique" copper and nickel assets. It also said it didn't consider demand predicted to stem from global electrification and decarbonisation.
The acquisition target also said the offer was "highly opportunistic". It was posted after the copper price and the OZ Minerals share price fell from recent peaks.
It was also noted that BHP has snapped up a stake of less than 5% in the copper giant.
While the BHP share price is trading slightly higher following the company's rejection, that of OZ Minerals is leaping upwards. It has gained 35% to trade at $25.70 at the time of writing.
