Anglo American to sell De Beers in bid to avoid takeover
- Anglo American, a British mining company, is planning to sell off its famous diamond business De Beers.
- This decision comes as a strategic move to prevent a takeover by Australia-based BHP Group.
- The shake-up in the mining industry highlights the competitive nature of the global market.
South Africa supports Anglo American's plan to sell De Beers, a famous diamond business, to protect the company from a £34bn takeover. The mining company decided to restructure by selling off parts of its 107-year-old company, including the world's largest diamond miner, De Beers, after rejecting a takeover offer from BHP. The South African mining minister prefers Anglo's restructuring plan over a BHP takeover. This change aims to simplify the company and focus on its valuable assets in copper, iron ore, and fertilizers. The plan includes selling De Beers, the South African platinum business, and coal assets. Anglo also intends to reduce investment in the Woodsmith fertilizer mine before seeking investors for a full-scale project in 2026. The goal is to optimize shareholder value. De Beers, founded in South Africa in 1888, may go public, but this option is uncertain due to market volatility. The diamond industry has faced challenges like declining sales due to economic slowdowns and competition from lab-created diamonds. Anglo rejected BHP's takeover bids as undervaluing its potential. The company's strategic vision aims to benefit shareholders and create flexibility. De Beers, owned mostly by Anglo, could attract buyers despite a recent drop in diamond prices. The diamond market has been affected by reduced production to balance supply and demand post-Covid. French luxury companies are potential buyers for De Beers. Anglo American's decision to sell De Beers is part of a larger restructuring plan to enhance shareholder value and adapt to changing market conditions.