Anglo American Targets Mid-Year Completion for Amplats Unbundling

Anglo American plans to finalize the unbundling and London listing of Anglo American Platinum (Amplats) by mid-2025, while the timeline for divesting its 85% stake in De Beers remains uncertain. The company is progressing with its restructuring strategy, which began last year following BHP's unsuccessful takeover attempt.

CEO Duncan Wanblad emphasized that Anglo is focused on maximizing value from both its divested and retained assets. While declining to comment on potential takeover bids, he expressed skepticism about the broader trend of industry consolidation, arguing that reducing the number of mining companies could harm global supply needs.

Anglo’s restructuring will narrow its focus to copper, iron ore, and fertilizer, while divesting platinum group metals, diamonds, metallurgical coal, and nickel. The company’s debt-to-earnings ratio is expected to fall below 1, down from the current range of 1.1 to 1.3, positioning Anglo for growth.

Last year, Anglo sold its metallurgical coal assets and reduced its Amplats stake from nearly 80% to 67%, raising over $930 million through two bookbuild exercises. The next phase involves unbundling the remaining Amplats shares to shareholders and listing them in London, facilitating continued investment from funds without South African mandates.

However, analysts predict challenges in divesting De Beers due to the struggling diamond market and the rise of laboratory-grown diamonds. Wanblad stated that while the timing is uncertain, Anglo is considering both sale and listing options for De Beers, contingent on market recovery. A potential sale could involve industry consolidation or partnerships with midstream or downstream players to enhance De Beers' value.

Industry sources have speculated about a consortium of De Beers sightholders as potential buyers, though Wanblad confirmed no current engagements. He assured that by year-end, De Beers would operate as a standalone entity, independent of Anglo’s performance.

BHP CEO Mike Henry has indicated that the Australian company can pursue copper growth without Anglo, whose copper assets were the primary attraction in last year’s bid.