Mining giant exits diamond and platinum business
UK-based South African mining firm Anglo American has announced it will exit diamond, platinum and coal mining in a massive restructuring designed to thwart rival BHP Group’s £34 billion ($43 billion) takeover bid.
Anglo American announced on Tuesday it would divest its steelmaking coal assets, spin off its platinum unit in South Africa, explore options for nickel mines and divest its diamond business De Beers.
Anglo American announced on Monday that it rejected the 34 billion pound ($42.67 billion) takeover offer of BHP Group, one of the world’s largest miners.
Anglo will now focus on copper mines and iron ore, its two largest and most stable sources of revenue and the businesses in which BHP has the most interest.
Anglo’s hand was forced by BHP’s twice-rejected bid, but the move also responds to pressure from shareholders to close less profitable businesses and focus on its industry-coveted copper assets.
Anglo’s shares fell 0.8 percent to £26.85 on the London Stock Exchange, below BHP’s offer of £27.53.