Anglo American Restructures Focus on Copper Amid Takeover Speculation

Anglo American is undergoing significant restructuring to concentrate on copper, a key material for the energy transition, after rejecting a $49 billion takeover offer from BHP Group earlier this year. The company will unbundle its diamond, platinum, nickel, and coal assets, including De Beers, Brazilian nickel mines, and Australian coal operations, to streamline its portfolio. This move is intended to reposition Anglo American as a copper-focused miner, with copper expected to represent 60% of its business.

Despite some analysts suggesting that this shift could make the company a more attractive takeover target, CEO Duncan Wanblad dismissed the idea of an acquisition as inevitable. Speaking at a virtual mining conference in Johannesburg, Wanblad stated that Anglo American would remain a viable, stand-alone company, emphasizing that the priority is to deliver value to stakeholders rather than focus on potential corporate actions.

Apart from its copper operations in Chile, Anglo will retain iron ore mines in South Africa and Brazil, along with the Woodsmith fertiliser project in the United Kingdom. Wanblad also mentioned that the company might offer another round of shares in Anglo American Platinum (Amplats), following the recent sale of a 5.3% stake to institutional investors. However, the timing of any further divestment will depend on market conditions.

The restructuring is expected to be completed by the first half of 2025.