The proposition by BHP Group for Anglo American to spin off its platinum and iron ore subsidiaries as a precursor to a takeover would probably necessitate approval from South African regulators, the media reported, citing South Africa's Competition Commission.
As per BHP's proposal, Anglo would have to divest its controlling stakes in South African Kumba Iron Ore and Anglo American Platinum, both of which are publicly traded in Johannesburg and possess assets in South Africa.
Anglo recently turned down the initial $39 billion offer from the Australian mining company. Anglo chairman Stuart Chambers called the offer "opportunistic" and said it failed to appreciate the company's prospects.
BHP is considering making an improved offer for Anglo, the media reported last week, citing people familiar with the situation.
If Anglo shareholders agree to an improved offer on the same terms, the demerger of Kumba and Anglo American Platinum will most likely trigger the necessary regulatory approvals in South Africa, Siyabulela Makunga, spokesperson for the Competition Commission, told the media.
The South African government, represented by the Public Investment Corporation, is Anglo American's largest shareholder with a 7% stake.