Benzinga - by Stjepan Kalinic, Benzinga Staff Writer.
Anglo American (OTCQX:AAUKF) plans to sell some of its legacy assets, notably its diamond business, De Beers, South Africa-based Anglo American Platinum, and steelmaking coal assets.
The sale process is part of Anglo American’s strategy to safeguard itself against the persistent takeover attempts by mining giant BHP (NYSE:BHP).
"These actions represent the most radical changes to Anglo American in decades," CEO Duncan Wanblad said, clarifying that BHP’s intensified takeover offers accelerated the pre-planned action review of assets.
Wanblad described the company’s restructuring plan as clear, compelling, and decisive, aimed at unlocking significant shareholder value by focusing on world-class assets, particularly in the copper sector.
He expressed confidence that Anglo American would reach exceptional valuation levels by the end of 2025.
Why It Matters: This sale allows for a sharpened focus on copper, iron ore, and crop nutrients. Wanblad anticipates these sectors will experience significant value appreciation by the end of 2025.
Copper, in particular, is witnessing a surge in demand due to its critical role in the green energy transition, serving as a core material for electric vehicles and renewable energy infrastructure.
In addition to the asset divestment, Anglo American is eyeing strategic partnerships for its Woodsmith fertilizer project in northeast England. Wanblad emphasized the need for investors to support the project’s full-scale operations, slated to commence in 2026.
While BHP still has one whole week to review its offer, the complexities regarding the transaction still loom. Most recently, South Africa's mineral minister, Gwede Mantashe, expressed reservation regarding BHP's offer but clarified it as a personal opinion rather than an official sentiment.
Price Action: Anglo American is currently trading $16.47 a share, down 2.87% at last check Tuesday.
Shares rallied late in the London season, closing 1.4% in the green on the day. Meanwhile, BHP closed the day 0.23% in the red, and its year-to-date decline now stands at 14.6%.
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