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Anglo American Plc is in the midst of a significant business restructuring, aiming to shift its primary focus towards copper as a key metal in the energy transition. CEO Duncan Wanblad stated on Thursday that despite these changes, the company is not an “inevitable” target for takeover bids.
The mining giant’s decision to streamline its business follows a $49 billion takeover bid from its larger rival, BHP Group, which it successfully fended off in May. This restructuring will involve unbundling several of its assets, including diamonds, platinum, nickel, and coal. By focusing more on copper, analysts suggest that Anglo American could attract suitors interested in its copper operations. However, Wanblad remains confident about the company’s future as an independent entity.
Shift to a Copper-Focused Portfolio
The reshuffle in Anglo American’s portfolio will result in copper making up 60% of its core business. The company will divest from its diamond unit De Beers, Australian steelmaking coal operations, nickel mines in Brazil, and the Anglo American Platinum (Amplats) operations in South Africa. Anglo will still hold copper assets in Chile, iron ore mines in both South Africa and Brazil, and the Woodsmith fertilizer project in the United Kingdom.
CEO’s Outlook on Potential Bids
During a virtual address to a mining conference in Johannesburg, Wanblad addressed the speculation about another potential takeover attempt. He asserted, “I don’t believe it’s inevitable at all. We will be a viable, stand-alone company in the market.” Emphasizing the company’s strategy and value creation, Wanblad made it clear that his priority is delivering on Anglo’s strategy for shareholders and stakeholders, rather than worrying about potential corporate maneuvers by other entities.
Future of Amplats Stake
Anglo American may consider offering one additional tranche of shares in its platinum division, Amplats, following the sale of a 5.3% stake to institutional investors last month. This move is part of the company’s plan to carefully manage its divestment from Amplats, which is expected to be completed by the first half of 2025.
“There might only be one more opportunity to do it,” Wanblad said, adding that the decision would depend entirely on market conditions at the time.
As Anglo American narrows its focus on copper, its strategy remains centered on becoming a leading energy transition metal provider while maintaining a diversified portfolio that aligns with its long-term goals.