Anglo American has outlined a plan to shed several of its assets as part of a major restructuring effort, following the rejection of an improved takeover proposal from BHP, which valued the company at almost $43 billion.
In a statement released on Tuesday, Anglo American detailed its strategy to spin off its platinum-metals unit, Anglo American Platinum, either sell or separate its diamond business, De Beers, divest its steelmaking coal assets, and consider options to put its nickel operation on hold before selling it. This move places a greater emphasis on copper for the company's future, with expectations of rising demand due to global decarbonization and limited supply. The enhanced bid from BHP, declined on Monday, indicated BHP’s strong interest in increasing its copper holdings.
"We believe a more streamlined business will drive sustainable value creation through significant improvements in operational performance and cost efficiency," said Duncan Wanblad, Chief Executive of Anglo American.
Several of Anglo American's assets have been facing challenges due to low commodity prices and increasing costs.
Over the past year, shares in Anglo’s Johannesburg-listed subsidiary, Anglo American Platinum, the world’s largest platinum producer, have declined by more than 30%.
According to a report by The Wall Street Journal last month, the company had preliminary discussions with potential buyers for its De Beers unit, which it values at over $7 billion.