Anglo American To Split Group After Rejecting BHP Bid
Faizan Hashmi Published May 14, 2024 | 01:30 PM
London, (APP - UrduPoint / Pakistan Point News - 14th May, 2024) Anglo American said Tuesday it would offload steelmaking coal, diamond and platinum businesses and focus on critical minerals as it fights off a massive takeover bid by Australian rival BHP.
After rejecting an improved takeover offer worth £34 billion ($43 billion) from BHP, which had hoped to create a copper titan, Anglo said it was accelerating plans to simplify the group and reward shareholders in a "radical" revamp.
"Following completion of the asset review initiated during 2023, Anglo American plans to implement a number of major structural changes to accelerate delivery against its strategic priorities of operational excellence, portfolio simplification, and growth," a statement said one day after news of the takeover rejection.
Anglo chief executive Duncan Wanblad added that "a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction.
"Anglo American's shareholders will see the full undiluted upside from these extensive changes, with the value of our copper and iron ore assets brought to the fore," he said.
Copper is essential to the world's transition to renewable energy because it is a vital component for greener technology like energy storage, electric vehicles, solar panels and wind turbines.
The price of copper has soared over the past year as a result and Anglo American expects the trend to continue.
Copper last month surpassed $10,000 per tonne for the first time in two years, with analysts citing strong demand and tight supplies that could be stretched further by BHP's bid proposal.
Anglo on Tuesday said it planned to offload its steelmaking coal arm and was exploring plans to divest the nickel operations.
It added that Anglo American Platinum would be demerged and that the De Beers diamond business would either be split or sold.
"These actions represent the most radical changes to Anglo American in decades," Wanblad added.
"We are taking clear and decisive action to deliver value... in the long term interests of our shareholders and other stakeholders."
Anglo had said that the BHP offer "signficantly" undervalued the group and its prospects.
The new bid was pitched at approximately £27.53 per share, up from about £25 per share that had been slammed by Anglo as "highly unattractive" and "opportunistic" in April.
Shares in Anglo traded flat at £27.05 in early London deals on Tuesday.
Anglo's stock has been boosted since the initial approach as traders bet on a possible bidding war with other mining giants like Glencore or Rio Tinto.
Anglo American was founded in South Africa in 1917 by the German-born industrialist Ernest Oppenheimer, 15 years after his arrival and a career in London.
It is now one of the largest mining companies in the world and is listed on stock exchanges both in London, where it is based, and Johannesburg.
Related Topics
Recent Stories
Team Europe launches new programmes to strengthen skills, energy in GB
New volcanic eruption on Iceland's Reykjanes peninsula: weather office
Bayern appoint Kompany to end long search for new coach
Dr Jah approaches President against closure of AJ&K Ombudsman institution
DPM Dar underscores significance of collective efforts in preserving shared anci ..
Fire erupted in Kotli forest, burnt trees, animals
Health ministers reach Kabirwala, review treatment of measles affected children
Stocks fall, dollar gains as rate cut outlook dims
Unidentified miscreants threw home-made bombs outside ASP City Office
Gaza doctors struggling in face of ‘overwhelming disaster’ as vital medical ..
Brazil recalls ambassador to Israel: diplomatic source
NKorea confirms trash sent to South, mocks Seoul for 'fuss'
More Stories From World
-
South Africa votes with long ANC dominance in the balance
11 minutes ago -
Swiatek saves match point to beat Osaka in French Open epic
11 minutes ago -
Jackson more focused on individual Olympic gold than Flo-Jo's record
21 minutes ago -
US prosecutors drop assault charges against top golfer Scheffler
21 minutes ago -
Tennis: French Open results - 2nd update
41 minutes ago -
Team Europe launches new programmes to strengthen skills, energy in GB
1 hour ago
-
New volcanic eruption on Iceland's Reykjanes peninsula: weather office
1 hour ago -
Gaza doctors struggling in face of ‘overwhelming disaster’ as vital medical supplies run low: WH ..
1 hour ago -
Brazil recalls ambassador to Israel: diplomatic source
1 hour ago -
NKorea confirms trash sent to South, mocks Seoul for 'fuss'
1 hour ago -
Ukraine says nine killed in series of Russian attacks
2 hours ago -
Macron urges Abbas to 'reform' Palestinian Authority with 'prospect of recognition'
2 hours ago