Wall Street believes that BHP Billiton is very likely to successfully acquire Anglo American Resources Group

Epic mining acquisition case sees new developments.

According to reports, following an increase in the acquisition offer, BHP is one step closer to acquiring Anglo American.

This week, BHP raised its all-stock acquisition offer for Anglo American to £38.6 billion (approximately $49.18 billion), a significant increase from the previous two offers of £31.1 billion and £34 billion, but still insists on Anglo American divesting its South African iron ore and platinum business first.

Although Anglo American rejected BHP's third acquisition proposal, they agreed to negotiate and extend the offer deadline by one week.

Insiders revealed that the valuation differences between the two sides are narrowing. The main challenge lies in the complexity of divesting Anglo American's South African operations.

Several Wall Street institutions believe that BHP is likely to reach a deal to acquire Anglo American, but both parties may need to make employment or other commitments in South Africa to alleviate concerns from the local government.

Elliott, Global Resources Fund Manager at ING, told the media:

Anglo American must accept BHP's significantly increased offer. Anglo American shareholders will not only receive undervalued BHP shares, but also continue to benefit from many of the world's highest-quality mines and the huge synergies post-merger.

Australian asset management company Platypus stated to the media that Anglo American agreeing to extend the negotiation period shows signs of concession, and the institution believes the deal will eventually be reached.

However, the institution also warned that regulatory resistance could still thwart the acquisition:

We are not satisfied with this deal, nor with the price. The price is secondary, what is truly unsettling is the complexity involved in such a large-scale transaction and the attempt to profit from it. History tells us that large mergers and acquisitions face significant obstacles.

Currently, based on BHP's offer, Anglo American is valued at approximately £30.24 per share, while Anglo American's closing price on Wednesday was less than £27. BHP, listed on the Australian stock exchange, fell by about 3% on the previous trading day, closing at AUD 44.84