Anglo American has today set out what it has called a “clear, compelling and decisive plan” to unlock shareholder value – which will include selling off diamond business De Beers.
The update followed yet another approach from peer BHP. On Monday, the Australian group said it had offered £34bn to acquire its smaller, London-listed peer, or around £27.53 per share. That was up from approximately £25 per share in last month’s original offer.
Anglo said it had assessed BHP’s revised non-binding offer but was still “significantly” undervaluing the company’s assets and prospects. Anglo reiterated that the structure was “highly unattractive” for shareholders.
We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction
As it set out its stall to remain independent, in today’s strategy update, Anglo said it planned to “implement a number of major structural changes” to simplify its portfolio and deliver growth over the long term.
Anglo said it would demerge or sell its De Beers diamond business, separate its Anglo American Platinum Ltd. unit and sell its coking coal mines in Australia
The company also said that it would slow spending on the giant Woodsmith potash mine in North Yorkshire.
Chief executive Duncan Wanblad said: “Our decision to focus Anglo American’s portfolio in our world-class resource asset base in copper and premium iron ore — while retaining our crop nutrients optionality at Woodsmith — marks a major new phase in executing our strategy.
“We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction,” Wanblad added.