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Anglo American Considers Selling De Beers in Major Restructuring

London—Anglo American is planning to sell both De Beers Group and its platinum business as part of a restructuring initiative aimed at positioning the company as a leader in the green energy sector.

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The London-based mining conglomerate announced Tuesday that it is exploring options to divest or demerge De Beers to enhance strategic flexibility for both entities. This move is part of a broader plan to streamline Anglo American’s operations.

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De Beers CEO Al Cook responded to the announcement with confidence, asserting that De Beers will continue to dominate the diamond industry. “Today’s announcement opens up new possibilities under new ownership. We will continue to deliver value for all our stakeholders,” Cook said, emphasizing ongoing partnerships and upcoming strategic plans, including a transformational agreement with the Government of Botswana.

Cook expressed optimism about the diamond sector’s future, noting the strong demand for rough diamonds and the company’s commitment to engaging new generations with the allure of diamonds.

Anglo American’s restructuring plan includes focusing on copper, vital for renewable energy and electric vehicles, and premium iron ore, crucial for steel decarbonization. Additionally, the company plans to divest its steelmaking coal and nickel businesses, alongside Anglo American Platinum Ltd.

The divestment of Anglo American Platinum is intended to be executed responsibly to optimize value for shareholders of both Anglo American and Anglo American Platinum.

The Platinum Guild International (PGI) commented on the restructuring, emphasizing its ongoing commitment to market development for platinum, particularly in the jewelry sector. Tim Schlick, PGI’s CEO, reiterated the organization’s focus on creating value for the platinum industry.

Anglo American Chief Executive Duncan Wanblad described the restructuring as the most significant change the company has undertaken in a decade, aimed at positioning Anglo American for future growth. He acknowledged the potential impacts on employees but highlighted the opportunities for them within both Anglo American and the divested businesses.

The restructuring announcement came a day after Anglo American confirmed receiving a second unsolicited takeover bid from BHP Group Ltd. This all-share proposal, valued at $43 billion, follows an earlier $39 billion offer, both of which Anglo American has rejected. The board unanimously deemed the latest offer undervalued and fraught with execution risks due to the complexities of demerging the platinum and iron ore businesses in South Africa.

Anglo American remains confident in its standalone prospects and continues to pursue its restructuring strategy to focus on green energy-related resources.

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Alice
Alice
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