Anglo American to exit diamond, platinum and coal mining as it fights BHP bid

By Steve Goldstein

Anglo American on Tuesday said it would exit the coal, platinum and diamonds business as it fends off a takeover approach from BHP.

The miner said it will divest its steelmaking coal business, demerge its stake in Anglo American Platinum and explore "a full range of options" with respect to De Beers.

It said it has already seen "strong buyer interest" for coal, and is exploring options for care and maintenance as well as divestment in nickel.

Anglo American (UK:AAL) said the moves would simplify its structure, focusing on copper, premium iron ore and crop nutrients.

Anglo American on Monday rejected a second bid from BHP (UK:BHP) of a stock swap that would also demerge its holdings in Anglo American Platinum (ZA:AMS) and Kumbra Iron Ore (ZA:KIO), that was valued around $42 billion.

Anglo American shares fell 3% while BHP rose 3% on the perceived reduced likelihood of a takeover.

"The decision to spin off their diamond, platinum, and coal mining operations will see a greater focus on copper. With copper rising into a fresh two-year high this morning, there is a clear surge in demand for this key material as the world progressively moves towards increased electrification," said Joshua Mahoney, chief markets analyst at Scope Markets.

The more volatile trading was in South Africa, as Anglo American Platinum shares fell 7% on the plan for it to be sold, while Kumbra rose.

-Steve Goldstein

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

05-14-24 0604ET

Copyright (c) 2024 Dow Jones & Company, Inc.