Anglo American CEO Accelerates Spin-Off Plans to Hinder BHP Takeover Bid

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The CEO of Anglo American, Duncan Wanblad, revealed on Tuesday that the company’s plans for a spin-off of its South African platinum assets have been expedited due to a takeover bid from rival BHP. Although Anglo was already evaluating its assets, BHP’s bid, which sought Anglo’s exit from its platinum and iron ore units in South Africa, prompted a faster timeline for action.

In response to BHP’s proposal, rejected twice by Anglo, the mining giant outlined a strategic plan that includes potentially breaking up the company by demerging or selling its steelmaking coal, nickel, diamonds, and platinum businesses. This includes the demerger of its Johannesburg-listed Anglo American Platinum unit, leading to a significant drop in Amplats’s shares.

Wanblad clarified that the acceleration of the spin-off plan was a response to the BHP bid and noted that the timing of the announcement, just ahead of the national election in South Africa, was not ideal. However, South Africa’s Mines Minister Gwede Mantashe expressed support for Anglo’s restructuring efforts, emphasizing the importance of optimizing portfolio performance. Mantashe also hoped that Anglo would continue resisting BHP’s takeover offer, which was raised to $43 billion on May 7.

Source: Reuters

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