- author, Peter Hoskins & Diavale Jordan
- role, Business reporter, BBC News
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British mining giant Anglo American has announced plans to split its business after rejecting a £34bn bid from rival BHP.
The company announced it would sell or separate key parts of the company, including De Beers' diamond business and platinum division.
Anglo American said the “fundamental changes” would allow it to focus on key areas such as copper, high-grade iron ore and crop nutrients.
As some countries transition to renewable energy and electric vehicles, demand for copper, which is used to run electricity, is increasing.
The deal with Australian company BHP would create the world's largest copper producer, but could face major competitive hurdles.
Anglo owns two copper mines in Chile and Peru, some of which are also operated by BHP.
Anglo rejected two bids from BHP and on Tuesday launched its own strategy that it hopes will win shareholder support.
These include the governments of Botswana and South Africa, which initially reacted tepidly to BHP's approach. The Australian giant had proposed separating Anglo's platinum mining arm, Amplats, and its Kumba iron ore business.
Anglo, which has operated in South Africa for more than a century, has announced that it will proceed with its merger with Amplats, which is cutting 3,700 jobs but will retain Kumba.
However, in the case of the Woodsmith potash mine, located underground on the North Yorkshire Moors, Anglo plans to cut investment to $200m (£159m) next year and zero by 2026, meaning crop nutrients The business will also be maintained.
“These actions represent the most fundamental change for Anglo American in decades,” said Duncan Wanblad, Anglo's chief executive.
BHP had proposed selling De Beers as part of the bid. Anglo has announced that it will sell or separate its diamond business, in which the Botswana government holds a 15% stake.
De Beers was founded in 1888 by British imperialist Cecil Rhodes.
In recent years, campaigners have lobbied for a statue of him at Oxford University to be removed. They argued that the businessman, who was also a politician in southern Africa, represented white supremacy and was steeped in colonialism and racism.
“While Mr. Rose is part of our company's early history, he is not representative of who we are today,” De Beers said.
Anglo said its plans aim to best position the business to benefit from the global transition to clean energy. He also expects the company's restructuring to reduce costs by $1.7 billion.
In rejecting BHP's incremental takeover offer, Anglo said it continued to significantly undervalue the company, making the offer “very unattractive” to shareholders.
“By implementing these portfolio changes in-house, we are ensuring that Anglo American continues to play its role in South Africa in a way that is respectful of our people, host communities and countries,” Wangblad said. Changes can be made.” Responsible business leaders who support the country's national priorities. ”
Anglo American shares fell 2.6% to £26.30 on Tuesday.