Anglo American to offload De Beers

Mining company Anglo American has set out plans to sell De Beers its diamond business, as part of its wider turnaround plan.

The group stated that the plan would “unlock significant value from its portfolio and accelerate the delivery of consistently stronger shareholder returns”.

As part of this plan the company could also dispose of its steelmaking coal, nickel and platinum businesses.

This news comes as Anglo is subject to a £34bn takeover approach from rival firm BHP.

As with the initial £31bn proposal from back in April, the deal is conditional on spinning off Anglo’s platinum and South African iron ore operations.

Duncan Wanblad, Anglo American CEO, said: “We set out our clear strategic priorities earlier this year – operational excellence, portfolio simplification, and growth. Our decision to focus Anglo American’s portfolio in our world-class resource asset base in copper and premium iron ore – while retaining our crop nutrients optionality at Woodsmith – marks a major new phase in executing our strategy.

“We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction. Anglo American’s shareholders will see the full undiluted upside from these extensive changes, with the value of our copper and iron ore assets brought to the fore.”

He added: “This next step in the transformation of Anglo American’s portfolio is set to accelerate the recognition of value that has been inherent in our business for many years and provide Anglo American’s shareholders with undiluted and differentiated participation in the major structural demand trends, while minimising any frictional costs associated with this major portfolio transformation.”