American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Anglo American Plans De Beers Sale After Rejecting BHP Offer

by admin May 16, 2024
May 16, 2024
Anglo American Plans De Beers Sale After Rejecting BHP Offer

Anglo American (LSE:AAL,OTCQX:AAUKF) announced plans to divest its De Beers diamond business as it moves to restructure in the face of a takeover bid from rival miner BHP (ASX:BHP,LSE:BHP,NYSE:BHP).

In a Tuesday (May 14) press release, the company said it wants to streamline its operations and focus on high-demand sectors such as copper, iron ore and crop nutrients, creating what it believes is a ‘future-enabling portfolio.’

The move comes after Anglo’s rejection of BHP’s US$38.8 billion bid in late April. If it had gone through, it would have been one of the resource industry’s largest mergers and would have produced the world’s leading copper producer.

“We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction,” said Anglo CEO Duncan Wanblad.

Anglo hopes that by streamlining its portfolio it will be able to position itself favorably in the rapidly evolving mining sector, particularly as demand for materials critical to renewable energy and electric vehicles continues to rise.

The restructuring would also involve the demerger of Anglo American Platinum (OTC Pink:AGPPF,JSE:AMS), and the divestment of the company’s steelmaking coal business. Anglo will explore options for its nickel operations.

Anglo plans to reduce its investment in its Woodsmith potash mine in North Yorkshire, England, as well.

A hurdle for the offloading of De Beers is the Botswana government’s 15 percent stake in the business.

In a media call, Wanblad expressed support for the growth strategy Anglo has developed for De Beers, but said the company thinks it is ‘better executed by different owners and in a different structure.’

Anglo American acquired De Beers in 2011, buying the Oppenheimer family’s 40 percent stake for US$5.1 billion.

Like other luxury goods, diamonds have experienced a decline in global demand. De Beers, which both mines diamonds and produces synthetic gems through its Lightbox Jewellery unit, has responded by limiting supply and offering flexibility to contracted customers. In February, Anglo announced a US$1.6 billion impairment charge on the division.

Reuters notes that a London listing for De Beers could be advantageous for the sluggish UK stock market, which has attracted only 2 percent of European initial public offering volumes this year.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
Gold and Silver Prices Gain on Cooling US CPI Data
next post
Canadian Critical Minerals Closes Financing

Related Posts

Dogecoin, Shiba Inu consolidates at key prices as...

April 28, 2025

ETH/BTC: Why is Ethereum vs Bitcoin Crashing, and...

March 13, 2025

SMCI stock forms megaphone pattern: what next Supermicro?

March 24, 2025

Grid Battery Announces Record Date and Effective Date...

April 19, 2024

Delek US Holdings stock gets a boost from...

September 11, 2024

Eclipse Metals

March 27, 2024

Circle stock price forecast: opportunities and risks

June 21, 2025

Rick Rule: Gold Stock Bull Market Building; Now...

March 14, 2024

Royal Caribbean stock is beating Carnival and Norwegian:...

October 10, 2024

Galan Response to AFR Street Talk Article

August 6, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,209)
    • Investing (2,537)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved