KEY TAKEAWAYS
- Anglo American is planning to split up and sell several assets after rejecting a sweetened $43 billion offer by rival mining giant BHP Group.
- Anglo said that it would spin off its platinum-metals subsidiary Anglo American Platinum and explore options for putting its nickel operation on “care and maintenance” before divesting it.
- Anglo also plans to divest or demerge its diamond unit De Beers and sell its steelmaking coal assets.
Anglo American is planning to split up and sell several assets after rejecting a sweetened $43 billion offer by rival mining giant BHP Group (BHP) in a break-up plan Chief Executive Officer (CEO) Duncan Wanblad called its most “radical” shakeup in decades.
Anglo said Tuesday that it would spin off its platinum-metals subsidiary Anglo American Platinum; explore options for putting its nickel operation on “care and maintenance” before divesting it; divest or demerge its diamond unit De Beers; and sell its steelmaking coal assets.
BHP had made the bid for Anglo on soaring demand for copper at a time when the world is moving away from fossil fuels towards more renewable energy projects and electric vehicles. Wanblad said the breakup will mean the miner’s assets base will be focused on copper and premium iron ore.
Copper has been on a tear this year, driven by rising demand for artificial intelligence (AI), which feeds on power from increasingly large data centers. Copper is commonly used in electrical wiring.
Bank of America (BAC) released a note earlier this month estimating that prices could rise another 17% by 2026,
BHP American depositary receipts (ADRs) were 3% higher as of 10:54 a.m. ET Tuesday, while Anglo shares were trading 3.6% lower in London.