Anglo American to cut South African business
Anglo American Plc plans to exit diamond, platinum, and coal mining in one of the biggest shake-ups in the company’s 107-year history, as the miner seeks to fight off a takeover approach from its bigger rival BHP Group.
Anglo said that it plans to demerge or sell its De Beers diamond business, separate its Anglo American Platinum Ltd. unit (based in South Africa) and sell its coking coal mines in Australia. It will also slow spending on a giant fertilizer mine in England.
However, South African-based Kumba Iron Ore will continue to be part of the broader Anglo American Group.
While Anglo has been working on a turnaround plan since the middle of last year, it’s been forced to accelerate the process after BHP proposed a takeover last month.
So far, Anglo has rejected two proposals from BHP — the latest worth £34 billion (R782 billion) — saying they undervalue the company and the structure is unworkable.
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.
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