Australian mining giant BHP Billiton confirmed on Thursday that it had proposed to Anglo AmericanInternationalcasinonodepositbonusAn all-share offer values the smaller competitor at 31.1 billion pounds ($38.8 billion).

Investors in Anglo American Group will get 0% for every share they hold.Internationalcasinonodepositbonus.7097 shares of BHP Billiton and shares of Anglo-American Platinum and Kumba Iron Ore. As of Wednesday's close, Anglo had a market capitalization of £27 billion.

"this merger will combine the advantages of BHP Billiton and Anglo American with an optimal structure," BHP said in a statement. Anglo American will bring its assets and long-term growth potential. BHP will bring higher-margin cash to generate assets and growth projects, as well as greater free cash flow and a stronger balance sheet. "

Anglo American said late on Wednesday that it had received an unsolicited all-share merger offer from BHP Billiton and that the board was reviewing it. The company added that the condition attached to BHP's proposal was that Anglo first divested its platinum and iron ore operations in South Africa. If the acquisition goes ahead, it will mark the return of BHP to a big deal.