British miner Anglo American says it has received a takeover proposal from BHP

British mining giant Anglo American says it has been approached by bigger rival BHP about a potential multi-billion dollar takeover offer.

Anglo American told the BBC that the proposal is currently being reviewed by its board, but did not disclose the value of the offer.

BHP did not immediately respond to a request for comment from the BBC.

If the deal goes through, it would be one of the mining industry’s biggest mergers in years.

Anglo American – which operates mines in countries such as Chile, South Africa, Brazil and Australia – has a stock market value of around 29 billion. GBP.

Australian-based BHP is the world’s largest publicly traded mining company with a market capitalization of around A$229 billion. ($149bn; £119.5bn).

The move comes a year after BHP bought copper producer Oz Minerals for A$9.6 billion. ($6.2bn; £5bn).

If completed, the deal will increase BHP’s access to copper through Anglo American’s operations in South America.

The price of copper has risen on global markets by more than 15% this year.

Prices have risen because the metal is in high demand as the shift to clean energy accelerates.

“Anglo American’s existing footprint in the copper industry is ultimately what attracted a mining giant like BHP,” Tim Waterer, chief market analyst at financial firm KCM Trade, told the BBC.

Anglo American’s share price has fallen by almost 10% in the past year, which could have helped make it an even more attractive takeover target, Mr Waterer added.

Susannah Streeter of investment platform Hargreaves Lansdown said BHP’s takeover plan “will send a chill through the City of London.”

“There is concern that if the deal goes through, it could be the tip of the iceberg and more giants could leave the stock exchange.”

BHP’s proposal makes any offer conditional on Anglo American giving up its interest in platinum and iron ore in South Africa.

Under UK mergers and acquisitions rules, BHP has until closing time on May 22 to make a formal offer for Anglo American.