In response to a takeover bid from BHP Group, Anglo American has announced plans for a potential break-up of the company through a series of divestments and demergers. The London-listed miner is looking to streamline its portfolio by shedding its steelmaking coal assets, demerging its platinum unit in South Africa, exploring options for its nickel mines, and divesting or demerging its diamonds business De Beers.
Anglo American CEO Duncan Wanblad stated that the company expects the new portfolio configuration to lower costs by $1.7 billion, and that a “radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction.”
The announcement comes a day after Anglo rejected a raised $43 billion offer from BHP, saying it continued to significantly undervalue the company and was “highly unattractive” for its shareholders. BHP’s offer required Anglo to sell its shares in iron ore and platinum assets in South Africa, a structure that Anglo found unattractive.
Wanblad emphasized that the company’s platinum and diamonds businesses are “excellent” and expects them to perform well, but that their value is “compromised” within the Anglo American portfolio, and the proposed restructuring is the best solution for shareholders.
The demerger of the South African platinum unit, Anglo American Platinum (Amplats), is expected to be completed by the end of 2025, with Amplats shareholders not bearing the costs. Anglo also said it will slow the development of its Woodsmith fertiliser project in northeast England and look for strategic partners, with first production pushed back from 2027.
The announcement of Anglo’s restructuring plans comes as the mining sector sees a wave of consolidation driven by strong demand for copper and other metals central to the energy transition.