- Wyloo Metals has raised its offer for Noront Resources Ltd., topping a takeover proposal by BHP.
- BHP initially beat Wyloo's bid last month, and Noront’s board had recommended shareholders go for the BHP deal.
- BHP and Wyloo are locking horns to become the significant electric battery raw material supplier amid skyrocketing demand for electric vehicles.
The company’s latest proposal has witnessed an increase in offering from a C$0.315 per share in May 2021 to C$0.70 per share against BHP's C$0.55 offering.
Andrew Forrest, the former CEO of Fortescue Mining Group, wanted to establish himself as a behemoth in the battery metal space after gaining significant success in iron ore investments.
In July, BHP had beaten the Wyloo bid, and Noront’s board had recommended shareholders to go for the BHP deal.
Noront is a Canada-based miner with significant interest in its high-grade Eagle’s Nest nickel project, which contains nickel, copper, and platinum group elements (PGE) deposits in the Ring of Fire, an emerging multi-metal region located in Ontario's James Bay Lowlands.
The region is anticipated to create more than 5,500 jobs and contribute as much as C$9.4 billion towards the GDP of the country within the first ten years of development.
The tussle between BHP and Wyloo
Source: © Nightowlza | Megapixl.com
Both BHP and Wyloo are locking their horns to become the key supplier of electric battery raw materials, including nickel and lithium, amid skyrocketing demand for electric vehicles (EVs) across the globe.
EVs account for a very tiny portion of the new sales of vehicles, but their increased uptake in the US, Europe, and China, along with the government support across the globe, is pushing the demand for EVs.
As per media reports, Noront's board had already renewed its support to BHP's proposal in early August and recommended shareholders to accept the offer. However, Wyloo, which controls 37.5% of Noront's share, doesn't intend to sell its shares to BHP.
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On Tuesday, BHP said that it would wait for a response from Noront's board ahead of deciding its future steps.