After rebuffing a second bid from BHP yesterday, Anglo American PLC (LSE:AAL) set out plans for a major restructuring of its portfolio and strategy, including selling off its De Beers diamond business and other units.
The FTSE 100 company said it would divest its steelmaking coal business, "responding to strong buyer interest"; demerge De Beers and Anglo American Platinum "in a responsible and orderly way", and look at options for care and maintenance or divestment of the nickel unit.
It plans to retain "optionality" at the Woodsmith fertiliser mine in North Yorkshire but will slow investment.
CEO Duncan Wanblad said in the statement: "We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction."
He said shareholders would "see the full undiluted upside from these extensive changes", with its copper and iron ore assets brought to the fore "while minimising any frictional costs associated with this major portfolio transformation".
Many of these portfolio changes were suggested by BHP, but Wanblad said "By implementing these portfolio changes ourselves, we will be able to do so in a manner that is respectful of our employees, host communities and countries, including ensuring that in South Africa in particular Anglo American continues to play its role as a responsible business leader to support the country's national priorities".
A 'comprehensive' review of the business, seemingly sparked by the BHP bids, looked the most attractive way to extract shareholder returns.
The new business, which will be over 50% focused on copper and other commodities focused on the energy transition and food security, will target an improvement in EBITDA margin to 46% from 31% and maintenance of the 40% dividend payout ratio.