Financial Diary – Santiago
Anglo American plans to split up as the mining group tries to win over shareholders following its rejection of a 34 billion pound ($42.7 billion) takeover bid from rival BHP.
In a series of sweeping changes at the 107-year-old mining company, Anglo said on Tuesday it would sell or spin off its De Beers diamond business.its South Africa-based Anglo American Platinum (Amplats) operation, as well as its coking coal assets.
London-listed Anglo will instead focus on its copper, iron ore and crop nutrients businesses. BHP, the world's largest miner, has set its sights on securing Anglo's copper business, which is expected to grow as the world decarbonises.
Since rejecting two proposals from BHP, which called for the spin-off of two South African units, Anglo chief executive Duncan Wanblad has been under intense pressure to define the group's future as an independent group.
Setting out the proposed changes, Wanblad said: “These actions represent the most radical changes at Anglo American in decades.”
The company “will be highly valued” by the end of 2025, when the restructuring is complete, he added in a media call.. “To the extent that someone wants to buy from us at that particular time, they will have to pay a huge amount of money for it.”
South Africa's Mining Minister Gwede Mantashe told the Financial Times he would prefer Anglo's restructuring plan to a break-up and takeover led by BHP.
“I am pleased with the rejection of the BHP deal and hope it continues, then Anglo can restructure to optimize value for shareholders,” he said. Anglo shares were trading lower on Tuesday. BHP's enhanced share offer valued Anglo at around £27.53, up from around £25 in its original offer.
