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Anglo American Plc will exit diamond, platinum and coal mining in a massive restructuring designed to fend off a takeover approach from rival BHP Group and turn the 107-year old miner into a copper giant.
Anglo said yesterday that it plans to de-merge or sell its De Beers diamond business, separate its Anglo American Platinum Ltd. unit and sell its coking coal mines in Australia. It will also slow spending on a giant fertiliser mine in England.
That will leave a much simpler company focused on iron ore and copper, a key metal for the energy transition.
It’s been forced to accelerate a turnaround plan after BHP proposed a takeover last month. So far Anglo has rejected two proposals from BHP — the latest worth £34 billion (US$43 billion) — saying they undervalue the company and the structure is unworkable.
Anglo is pinning its hopes on investors supporting its plan — and backing management to deliver it — rather than pushing to accept an offer from BHP. Investors had been demanding Anglo come out with its own plan, and today’s move responds to what some shareholders were calling for.
“This is not the direction BHP wanted to go,” said Lachlan Shaw, an analyst from UBS Group AG. “The Anglo rejection and this potentially will have caught them by surprise and they would maybe have expected to be engaged in further discussions.”
Anglo’s shares fell 0,8 percent to £26,85 in London trading, below the £27,53 that BHP is offering. Amplats, as the platinum business is known, fell as much as 10 percent in Johannesburg.
Meanwhile, BHP Group said Anglo American Plc rebuffed an improved takeover offer, which valued the mining company at about £34 billion (US$43 billion). — Bloomberg.
Online Reporter