Anglo American Plc's shareholders are urging the company to accelerate the release of its turnaround plan as it faces a takeover bid from BHP Group Ltd. The 107-year-old miner has been reassessing its operations since mid-2023 to revamp a business that has lagged behind competitors in recent years. However, this process was interrupted by BHP's recent acquisition approach.
Anglo's shareholders are now pushing for a swift conclusion to the analysis and are seeking clarity on how the company's proposed strategy could generate more value than a sale to its rival. These discussions, involving some of Anglo's largest stakeholders, have emphasized the need for prompt action.
There are indications that Anglo may unveil its strategy in the upcoming week, possibly during Bank of America Corp.'s annual conference in Miami, where top mining executives gather. However, the timing of this reveal remains uncertain, especially with expectations of a renewed bid from BHP and potential public statements from activist investor Elliott Investment Management, one of Anglo's significant shareholders.
Anglo's CEO Duncan Wanblad had previously cautioned investors about rushing decisions amid market cycles. Nonetheless, the mining industry is closely watching developments, anticipating BHP's next move and Elliott's potential involvement.
BHP has outlined its own vision for Anglo, proposing to split its South African businesses and acquire the remaining assets, including copper mines. However, Anglo dismissed this proposal, citing undervaluation and practical challenges with the suggested spinoff plan. Investors are keen to learn Anglo's plans for its diamond business De Beers, the Woodsmith fertilizer project in northern England, and its South African units.
There's pressure from investors to reconsider spending on the Woodsmith project, with suggestions ranging from seeking partnerships to halting development altogether. Additionally, some view De Beers as a mismatch for Anglo, given the unique marketing requirements of diamonds compared to other commodities, though it remains a coveted asset despite current market conditions.
While diamonds may be experiencing a downturn, Anglo is unlikely to entertain lowball offers for De Beers, recognizing its value as a prestigious asset.
