BHP Group has a week to persuade Anglo American about its South African strategy in a $74 billion takeover bid.

Despite BHP's increased offer and closer valuation alignment, the deadlock persists over the necessity of Anglo spinning off its South African assets.

BHP insists on the condition, causing Anglo concern about the financial implications.

While talks continue, optimism from BHP contrasts with Anglo's cautious stance due to concerns about the spin-off's financial burden on shareholders.

Negotiations will likely focus on cost-sharing arrangements.