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British mining giant Anglo American said on Tuesday that is planning to spin off its iconic De Beers diamond brand to “improve strategic flexibility.”
The plan is part of a larger restructuring of the 107-year-old business and comes just days after the company rejected a $47.3 billion takeover bid from its Australian mining rival BHP Group.
“We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction,” said Anglo American CEO Duncan Wanblad in a press release.
The proposed restructure, which represent “the most radical changes to Anglo American in decades,” would see the company divest from a several of its divisions to focus on its most lucrative businesses.
In the company’s press release, Anglo American said it would de-invest or de-merge its diamond, nickel, platinum, and steelmaking coal divisions — to focus instead on copper and premium iron ore, along with agriculture.
“We set out our clear strategic priorities earlier this year – operational excellence, portfolio simplification, and growth,” Wanblad said. “Our decision to focus Anglo American’s portfolio in our world-class resource asset base in copper and premium iron ore — while retaining our crop nutrients optionality at Woodsmith — marks a major new phase in executing our strategy.”
The move marks shifting priorities in the industry. An emphasis on renewable energy and electric vehicles has spurred demand for copper, while the rise of lab-grown diamonds has put pressure on the price of the precious jewels.
Anglo American has previously rejected several buyout offers from BHP. The miner said that the most recent offer “continues to significantly undervalue Anglo American and its future prospects.”
Anglo American generated $32 billion in revenue in 2023. Its stock fell 4% during Tuesday trading.
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