Anglo American plans to break up its sprawling business as it tries to fend off takeover
Mining giant Anglo American plc plans to break up its sprawling worldwide business — including the DeBeers diamond operation — as it seeks to fend off a takeover and focus on minerals that are expected to boom amid the global shift to green energy
LONDON — Mining giant Anglo American PLC plans to break up its sprawling worldwide business — including spinning off the DeBeers diamond operation — as it seeks to fend off a takeover and focus on minerals that are expected to boom amid the global shift to green energy.
London-based Anglo American said on Tuesday that it would spin off its platinum business, sell a unit that produces coal used in steel production and “explore all options” to separate DeBeers from the parent company.
The moves will allow Anglo American to concentrate on the production of copper and iron ore, which together accounted for more than two-thirds of its profit last year. The company will also retain its crop nutrients business.
The announcement came a day after Anglo American rejected a sweetened takeover bid from rival BHP Group that valued the company at 34 billion pounds ($42.6 billion). That was about 9% higher that BHP’s previous offer.
“We are taking clear and decisive action to deliver value — safely, responsibly and reliably — in the long-term interests of our shareholders and other stakeholders, and to deliver the products that are so critical to enabling the energy transition and supporting improved global living standards and food security,” Anglo Chief Executive Duncan Wangled said in a statement.
Anglo American shares fell 2.8% to 2,632 pence in midafternoon trading in London on Tuesday. The stock had risen as much as 33% in the previous three weeks on speculation about a takeover.
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