Anglo American eyes potential breakup as it tries to fend off BHP takeover bid

Anglo American laid out plans on Tuesday for a potential breakup of the group via a demerger or sale of its steelmaking coal, nickel, diamonds and platinum businesses as it tries to fend off a takeover bid from BHP Group.rejected a raised $43-billion offer from BHP

“We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction,” Anglo CEO Duncan Wanblad said. Wanblad said he expects the demerger from South African platinum unit Anglo American Platinum, known as Amplats, to be completed by the end of 2025, and that Amplats shareholders would not bear its costs.

BHP’s offer to Anglo American shareholders of £27.53 per share, up from £25.08 previously, required Anglo to sell its shares in iron ore and platinum assets in South Africa, a structure Anglo says is unattractive. Anglo also said on Tuesday it will slow the development of its Woodsmith fertilizer project in northeast England and look for strategic partners. First production at Woodsmith will be pushed back from 2027, Wanblad said.

“There is no time scale attached to most of the plans and it has been clear to most that many of the potential disposals across the portfolio are simply tough to execute as there are no interested parties.”

Source: News Formal (newsformal.com)

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