The much-anticipated takeover of Anglo American by BHP Billiton has continued to heighten market volatility recently, with industry insiders predicting that everything from commodities to the equity foreign exchange market will be affected by the mining giant's merger.

　　Bloomberg reported that a JP Morgan report said that if BHP Billiton succeeds in acquiring Anglo American in accordance with its proposed agreement, it could lead to a $4.3 billion outflow of funds from South Africa, and such an outflow of funds could weaken the South African currency, the rand.

　　Anglo American rejected BHP Billiton's third offer of more than $49 billion last week, but has agreed to enter into negotiations with BHP Billiton. BHP now has until May 29 to make a firm offer. According to a person familiar with the matter on Saturday, major shareholders, including BlackRock, have encouraged Anglo American Mining Group to continue talks with BHP Billiton on a merger plan.

　　Under BHP's proposed takeover deal, Anglo American would reportedly distribute its stake in South Africa's iron ore and platinum divisions to shareholders. Cunningham, a South African mining analyst at JP Morgan, said developed market investors would sell $9.4 billion of shares and emerging market investors would buy $5.1 billion, resulting in a net outflow of funds. Cunningham added that if the deal goes through, it could also affect the share prices of two companies, Amplats and Kumba, Anglo American's platinum business unit.

　　In addition to the impact on the stock and foreign exchange markets, recent mergers and acquisitions have triggered a rise in copper prices based on the influence the two mining giants have on copper production.

　　BHP Billiton CEO Henry has recently made no secret of his desire to expand its copper business, while Anglo American's copper mines have long been seen as valuable assets in its vast portfolio. Copper prices have risen to record levels in recent weeks.

　　A statement released on Anglo American's website indicates that the company is preparing to “break its back” and simplify its portfolio of assets. Specifically, Anglo American will retain the copper, high-quality iron ore and crop nutrients business, but the last business will also slow the pace of development and reduce investment.

　　BHP Billiton is currently one of the world's largest mining companies, with 80,000 employees worldwide and a current total market capitalization of more than $152 billion. Its main products mainly include copper, iron ore, coking coal, power coal, nickel, potash, etc. In fiscal year 2023 (June 1, 2022-June 30, 2023), the company's revenue was $53.817 billion, down 17% compared to the same period of the previous year (year-on-year); the underlying profit was $13.42 billion, a year-on-year decline of 37%, which is also the lowest annual record for the company in the past three years Profits.