Anglo American Plans to Split Up Units After Rejecting $43 Billion BHP Bid
By Christian Moess Laursen
Anglo American outlined a group restructuring that includes the sale of several assets to boost its portfolio amid speculation of further takeover bids from mining rivals.
The multinational, diversified miner said Tuesday that it will spin off its platinum-metals subsidiary Anglo American Platinum, divest or demerge its diamond unit De Beers, sell its steelmaking coal assets, while exploring options for putting its nickel operation on care and maintenance before divesting it.
"We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction," Chief Executive Duncan Wanblad said.
The restructure is aimed at pivoting the company toward a 100% so-called future-enabling portfolio, with assets that will support the global green-energy transition. Copper, iron and crop nutrients will remain key in Anglo American's portfolio, it said.
The reorganization will reduce costs by $1.7 billion, it said.
On Monday, Anglo American rejected a sweetened takeover proposal from rival BHP that valued the mining company at almost $43 billion, in what would be the biggest mining deal on record.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
May 14, 2024 02:46 ET (06:46 GMT)
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