Anglo American will sell or shut everything except its copper, iron ore and potash mines as part of a strategy to dodge BHP’s advances.
Already a subscriber?Anglo American will sell its Queensland coking coal assets and exit the diamond, platinum and nickel industries under a bold plan to concentrate on its strengths and fend offFresh from rejecting a 15 per cent improvement in BHP’s all-scrip takeover offer, Anglo chief executive Duncan Wanblad unveiled a plan to produce only copper, iron ore and crop nutrients, labelling his strategy “the most radical changes” to Anglo in decades.
Anglo has pointed to BHP’s Kumba and Amplats request as one of the major reasons for rejecting its approach. Mr Cutifani’s strategy prompted Anglo to start a sale process for its Queensland coking coal mines in 2016, but that was called off when commodity prices improved.whether he would also abandon his strategy if commodity prices changed, Mr Wanblad said he was “thoroughly committed to this”.
BHP shares fell 0.2 per cent to $43.15 on Tuesday; Anglo American shares added 0.2 per cent to £27.13 on Monday in London. “If BHP pay £30-35 for Anglo to get this done there is no way that is a good use of shareholders capital.”Tribeca Resources portfolio manager Ben Cleary agreed that BHP needed to pay more to succeed.
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