BHP says it won't match Wyloo's offer for Noront

BHP said on Tuesday that it would not be increasing its offer for Canadian miner Noront Resources after it agreed to be bought by Australia’s Wyloo Metals but also gave BHP five days to match the offer.

Last week, Wyloo lifted its offer for the shares it doesn’t already own in Noront to CAD1.10 each, trumping a previous offer of CAD0.35 made by BHP. Wyloo’s sweetened offer values Noront at CAD616.9m.

BHP said in a statement that it would not be matching Wyloo’s offer. The company’s chief development officer, Johan van Jaarsveld, said: "BHP is committed to its strict capital discipline framework.

"While the Eagle's Nest deposit is a promising resource, we do not see adequate long-term value for BHP shareholders to support an increase in BHP's offer in order to match the CAD1.10 per share proposal from Wyloo Metals Pty Ltd."

Wyloo, which is owned by billionaire mining magnate Andrew Forrest, already has a 37.2% stake in Noront.