Anglo American has orchestrated a significant strategic move by selling its 33 per cent stake in the Australian steelmaking coal business, Jellinbah Group, for £850 million. The sale materialises as part of a broader defensive restructuring strategy aimed at warding off potential hostile takeovers.
The FTSE 100 mining giant’s stake has been acquired by Zashvin, an investment vehicle owned by Brisbane billionaire Sam Chong. The transaction positions Zashvin alongside Japanese trading firm Marubeni as joint stakeholders in the Queensland-based operation, which encompasses the Jellinbah East and Lake Vermont steelmaking coal mines.
The divestment comes at a crucial time for Anglo American, which generated impressive first-half 2024 revenues of $354 million and underlying earnings before interest, tax, depreciation and amortisation of $153 million. The company’s chief executive, Duncan Wanblad, emphasised that negotiations for the sale of their remaining Australian steelmaking coal operations are progressing well, with terms expected to be finalised in the coming months.
This strategic realignment follows Anglo American’s successful defence against a £39 billion takeover approach from mining behemoth BHP earlier this year. The company is actively streamlining its portfolio, with plans to divest its De Beers diamond unit and various nickel and platinum assets. The restructuring aims to create a more focused entity with substantial exposure to copper, a metal crucial for the global transition to green energy.
Market analysts at RBC Capital Markets maintain an optimistic outlook on Anglo American’s share price trajectory, predicting strengthening as the company moves towards a 60 per cent copper-focused portfolio. The mining giant’s copper operations in Peru and Chile, capable of producing approximately 760,000 tonnes annually, remain highly attractive to potential suitors.
While BHP’s chairman recently attempted to quell speculation about a renewed bid, industry experts suggest that further approaches cannot be ruled out after the mandatory six-month cooling-off period expires on 29 November. The market responded positively to the latest divestment announcement, with Anglo American’s shares rising by 23 pence, or 0.96 per cent, to £24.19.
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