Diamond rings are displayed in a cabinet inside the De Beers SA store in Hong Kong, China, on Thursday, September 14, 2017. Chinese luxury spending on travel is “rivaled” fastest growing competition” is hindering diamond sales in this region. largest consumer marketplace in the world, CEO Bruce Cleaver said in an interview. Photographer: Calvin Sit/Bloomberg via Getty Images
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British American plans to spin off its prized De Beers diamond unit as part of a sweeping restructuring of its 107-year-old business that seeks to fend off persistent takeover attempts from rival mining mine BHP Group.
The British miner said in one declare Third that De Beers could be divested or spun off to “improve strategic flexibility.”
It also plans to wind down its steelmaking coal, nickel and platinum businesses as part of an accelerated strategic overhaul following a 2023 asset review.
The company’s shares were down 3.2% as of 10:10 a.m. London time.
Chief executive Duncan Wanblad said the restructuring, which represents “the most fundamental changes for Anglo American in decades”, will help streamline the business and deliver greater value for shareholders.
“We expect that a radically simpler business will deliver sustainable added value creation through incremental changes in operational efficiency and cost reduction,” said Wanblad. .
“Anglo American shareholders will see the full, undiluted benefits of these sweeping changes, with the value of our copper and iron ore assets enhanced,” he added.
The announcement came just a day after Anglo discarded object an improved takeover proposal from BHP. The Australian mining giant has been pursuing its British rival since late this year last monthis seeking a multibillion-dollar deal that could create the world’s largest copper miner.
His brother said ABOVE Second, BHP’s £34 billion ($42.6 billion) offer – up from its previous £31 billion bid – continues to “significantly undervalue” the business and remains “very unattractive” to shareholders.
De Beers was once the jewel in the crown of Anglo’s burgeoning business, dominating the diamond market in both total volume and public sentiment thanks to the enduring success of its “Diamonds are Forever” campaign. forever” in the 1940s.
However, the market has come under pressure in recent years due to the rise of lab-grown diamonds as consumers increasingly turn to synthetic and lower-cost alternatives.
