BHP has revealed it is no longer considering a combination with FTSE 100 British mining firm, Anglo American.

The statement from the Australian firm comes after Anglo American rejected a £39bn bid in May last year.

BHP said that while it still believes a combination with the British company would have had “strong strategic merits” and created significant value for stakeholders, it is confident in the potential of its own organic growth strategy.

The announcement comes after Anglo American announced a£39bn merger with Canadian mining group, Teck Resources. Shareholders at both firms are set to vote on the deal next month.

Under UK takeover rules, BHP cannot make another offer for Anglo American for six months, unless there is a martial change of circumstances.

Investment director at AJ Bell, Russ Mould, said that it was inevitable that BHP would try its luck at buying Anglo American.

He added: "The clock was ticking to get in with another offer before Anglo’s merger with Teck became a formality, but whatever happened behind closed doors hasn’t derailed this deal.

"BHP has walked away, leaving Anglo to pursue a future with Teck. For BHP, this is frustrating on two levels. First, buying Anglo could have greatly strengthened its position in copper, seen by many as one of the most important metals of the future. Second, a combined Anglo/Teck creates a competitor with bigger scale.

"BHP has enough to do with existing projects to keep it busy, and it remains a major player in the industry. However, this is an industry built on M&A, and no-one wants to be the loser when it comes to either diggers or dealers."

---