In a bold and unexpected strategic gambit, London-listed mining titan Anglo American has announced a complete corporate overhaul designed to fiercely resist a £34 billion takeover approach from Australian rival BHP.
The sweeping plan, revealed to the market on Tuesday, signifies one of the most significant shake-ups in the company's storied 107-year history. At its core is the decision to spin off its iconic diamond business, De Beers, a name synonymous with luxury and a cornerstone of the Anglo American empire.
The restructuring doesn't stop there. The firm also declared its intention to divest its entire steelmaking coal portfolio and demerge its platinum division, Amplats. This move effectively dismantles the current structure of the mining behemoth, aiming to create a more streamlined, focused operation centred on its prized copper and iron ore assets.
This radical response comes after Anglo American's board unanimously rejected what it termed a "highly unattractive" all-share offer from BHP. The proposal, which would have been one of the largest mining deals ever, was criticised for its structure and significant execution risks.
Market analysts were taken aback by the sheer scale of the announced changes. The decision to part ways with De Beers is particularly symbolic, marking a major shift in strategy for a company that has long defined itself by a diverse portfolio of premium assets. The move is seen as a direct appeal to shareholders, demonstrating a clear path to unlocking greater value independently than through a BHP acquisition.
The announcement sets the stage for a high-stakes battle. BHP now must decide whether to formalise its offer with a firm bid by a deadline of 22 May or walk away for at least six months. Anglo American's pre-emptive strike makes it clear that any future offer will need to be substantially higher to even be considered.
For the City of London, the outcome is being closely watched. The potential loss of another FTSE 100 giant to a foreign buyer is a sensitive issue, making Anglo American's defiant stance and its plan for a future as a leaner, copper-focused leader a narrative that will dominate financial news for weeks to come.
