Anglo American mulls breakup amid BHP takeover bid

Anglo American revealed a strategic plan on Tuesday, considering the potential breakup of the company by either demerging or selling its steelmaking coal, nickel, diamonds, and platinum businesses, Reuters reported.

The move is aimed at resisting a takeover bid from BHP Group, the world’s largest miner.

The announcement followed Anglo’s rejection of BHP’s increased offer of $43 billion a day earlier, stating that it still significantly undervalued the company and was unappealing to its shareholders.

In a statement, Anglo outlined its intentions to divest its steelmaking coal assets, demerge its platinum unit in South Africa, explore options for its nickel mines, and either divest or demerge its diamonds business, De Beers.

CEO Duncan Wanblad expressed confidence that simplifying the business model would lead to sustainable value creation through improved operational performance and cost reduction.

Since BHP’s initial approach in April, Anglo has been engaging with investors, prompted by a thorough review of all its assets initiated in February following a 94 per cent drop in annual profit and write-downs in its diamond and nickel operations.

Additionally, the London-listed miner announced a slowdown in the development of its Woodsmith fertiliser project in northeast England, with plans to seek strategic partners afterward. Capital expenditure for 2025 is set at $200 million, down from the previously estimated $1 billion, with no capital spending planned for 2026.

BHP’s offer to Anglo American shareholders stood at 27.53 pounds per share, up from 25.08 pounds previously. Meanwhile, Anglo shares saw a modest increase of about 0.4 per cent to 27.17 pounds by 0710 GMT.

(Exchange rate: $1 = 0.7966 pounds)