Anglo American to cut South African business

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Anglo American plans to seperate its South African platinum business, but there is still a positive for its iron operations.

Anglo American Plc plans to exit diamond, platinum, and coal mining in one of the biggest shake-ups in the company’s 107-year history, as the miner seeks to fight off a takeover approach from its bigger rival BHP Group.and sell its coking coal mines in Australia. It will also slow spending on a giant fertilizer mine in England.

However, South African-based Kumba Iron Ore will continue to be part of the broader Anglo American Group. While Anglo has been working on a turnaround plan since the middle of last year, it’s been forced to accelerate the process after BHP proposed a takeover last month. So far, Anglo has rejected two proposals from BHP — the latest worth £34 billion — saying they undervalue the company and the structure is unworkable.Anglo is pinning its hopes on investors supporting its plan — and backing management to deliver it — rather than pushing to accept an offer from BHP. Investors had been demanding Anglo come out with its own plan.

 

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