From Morningstar: 2024-05-14 06:34:00

Anglo American announced a new strategy focusing on keeping copper and iron ore assets while shedding platinum and diamond businesses. BHP Group made an increased all-share offer of £34 billion, which was rejected by Anglo’s board. Anglo plans to demerge Anglo American Platinum Ltd and De Beers to unlock shareholder value and simplify its portfolio.

In response to BHP’s offer, Anglo American plans to split off certain assets and simplify its business to drive operational performance. The company intends to focus on copper and iron ore, exploring options for divesting its coal and nickel operations. Anglo expects to achieve $1 billion annual savings in operating expenses by 2024.

Anglo American’s CEO Duncan Wanblad expressed confidence that a simpler business model will create incremental value and drive cost reductions. Wanblad highlighted the potential for shareholder benefits and increased efficiency as a result of the restructuring. The company is on track to deliver significant cost savings and operational improvements over the coming years.



Read more at Morningstar: Anglo American to Spin Off Assets after Rejecting…