Anglo American Plc to exit diamonds, platinum and coal mining
Anglo American Plc will exit diamond, platinum and coal mining in a massive restructuring designed to fend off a £34 billion ($43 billion) takeover approach from rival BHP Group and turn the miner into a copper giant.
Anglo's hand was forced by BHP's bid — which it has twice rejected — but the move also responds to pressure from shareholders to shed less profitable businesses and focus on the copper assets that are the envy of the industry. It leaves a much simpler company — though also a potentially more attractive one to suitors.
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.
Anglo's shares fell 0.8% to £26.85 in London trading, below the £27.53 that BHP is offering. Amplats, as the platinum business is known, fell 10% in Johannesburg.
Anglo will now focus on copper mines and iron ore, its two biggest and most consistent earners and the businesses that BHP is most attracted to. Perhaps controversially, it will also stick with its Woodsmith fertilizer project in the north of England that some investors have pushed for it to quit.
Anglo said Tuesday that it plans to demerge or sell its De Beers diamond business, separate its Anglo American Platinum unit and sell its coking coal mines in Australia.
It will also slow
