Anglo American to demerge assets in platinum, diamonds and coal
Anglo American says the principle behind the portfolio changes is to deliver the best value outcome for assets and businesses over time, leading to decisions relating to the following businesses, to be implemented as separate transactions and for value:
Steelmaking coal – Anglo American intends to divest its high quality Steelmaking Coal business, with proceeds used to reset Anglo American’s balance sheet.
Anglo American Platinum – Anglo American Platinum’s assets have exceptional geological potential and Anglo American is currently setting up Anglo American Platinum to be resilient and deliver sustainable returns through the cycle as one of the world’s leading PGMs producers, despite the current cyclical downturn. Anglo American and Anglo American Platinum are working together to transform Anglo American Platinum to generate multi-decade cash flows, high returns and delivering its full potential. The ongoing reconfiguration of Anglo American Platinum and associated employee consultation process, announced in February 2024, continue and are not affected by this announcement.
It is, however, increasingly clear that if Anglo American were to retain Anglo American Platinum in its portfolio, it limits the ability to have the full value of both businesses fully reflected, limiting the ability of both Anglo American and Anglo American Platinum to achieve their full potential. Anglo American’s portfolio and structure are simpler without Anglo American Platinum, Anglo American’s portfolio will have strong geographic balance and less complexity in future capital allocation. As a standalone business, Anglo American Platinum will be best positioned to set its own priorities to deliver its full potential.
De Beers – Having made significant progress towards finalising the sales agreement with the Government of the Republic of Botswana, Anglo American is exploring the full range of options to separate the business in order to set it up for success in unlocking full value from its new Origins strategy, its world-class assets and its iconic brand. This will provide both Anglo American and De Beers with a new level of strategic flexibility to maximise value for both company’s shareholders.
