US economic growth slows; Anglo American shares surge after BHP proposes £31.1bn takeover – as it happened

FTSE 100 hits another record, after buyout offer for Anglo American, while US economy slowed by more than expected in the last quarter

• Full story: US growth slows as inflation rises, spooking markets
• Full story: BHP moves to buy Anglo American mining group

BHP's proposal to buy Anglo American is a monster" deal, says analyst Neil Wilson of Markets.com.

He explains:

Anglo shares jumped 11% at the open. Anglo has not had a great year - the rally this morning has erased the losses of the last 12 months, just. It's got the assets but is not maybe doing as well as it might; in December the company downgraded its production targets. BHP clearly wants the copper assets - it's not long after buying Oz Minerals.

Clearly, competition authorities would take note due to the position in copper a combined company would have. South African platinum and iron ore assets would be spun off, which could be politically sensitive. If BHP doesn't make it work, others may try. Shares trade at 24.80, a little shy of the 25.08 implied by the offer - not much discount, suggesting it's a) being treated seriously and b) could go higher.

The biggest headline-grabber today is news that BHP has made a buyout approach for Anglo American. Anglo's exposure to copper compared to other listed miners is core area of BHP's focus, as it looks to benefit from the material as the energy transition gathers pace.

At the same time, BHP is looking to make hay while the sun shines on the gold price, but a deal of this magnitude does little to reassure investors it's prioritising cost targets. BHP is also taking advantage of Anglo's more recent weakness, which has seen it review its assets and write down their value. Should the deal go ahead, it would interrupt the long-term potential for Anglo investors, at a time when a turnaround is likely.