Anglo American shares fell over 3% early Tuesday after it announced plans to spin off its highly prized De Beers diamond business.
The British miner said that its famed diamond business could be divested or demerged to"improve strategic flexibility."
The accelerated strategy overhaul comes as the British miner seeks to fend off persistent takeover bids from mining rival BHP Group.plans to spin off its highly prized De Beers diamond unit as part of a sweeping restructuring of its 107-year-old business as it seeks to fend off persistent takeover bids from mining rivalIt also plans to offload its steelmaking coal, nickel and platinum businesses as part of an accelerated strategic overhaul following a 2023 asset review.
"We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction," Wanblad said."Anglo American's shareholders will see the full undiluted upside from these extensive changes, with the value of our copper and iron ore assets brought to the fore," he added.
De Beers was once the jewel in the crown of Anglo's sprawling business, dominating the diamond market in terms of both total volumes and public psyche thanks to the enduring success of its 1940s"A diamond is forever" campaign. The market has, however, come under pressure in recent years from the rise of lab-grown diamonds as consumers increasingly shift toward lower-cost and synthetic alternatives.
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