Anglo American has announced its intention to either sell or spin off its diamond business, De Beers, as part of a strategic restructuring aimed at simplifying its portfolio.

This move comes on the heels of the company’s decision to dismiss a takeover bid from BHP Group.

The announcement comes a day after Anglo American rejected BHP’s £34bn ($42.7bn) revised buyout proposal, stating that the offer significantly undervalues the company and its future prospects and poses execution risks.

As part of the restructuring, Anglo American is also exploring options for the divestment of its steelmaking coal and nickel assets, while Anglo American Platinum will be demerged in a responsible and orderly manner to optimise value for shareholders of both entities.

Upon completion of the asset review, which commenced in 2023, Anglo American plans to implement various major structural changes to focus on operational excellence, portfolio simplification and growth.

Anglo American said the restructuring will help it focus on key areas such as copper, premium iron ore and crop nutrients.

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This restructuring will see Anglo American concentrate on three of the top ten producing copper mines in South America.

The company aims to surpass one million tonnes per annum of copper production.

In the iron ore sector, Anglo American will continue as a focused producer of premium products, supporting steel decarbonisation with resources in Brazil and South Africa.

The transformation of the portfolio and structure will result in a 100% future-enabling portfolio, including 54% copper production, aligned with the energy transition, global living standards and food security.

Anglo American CEO Duncan Wanblad said: “Our decision to focus Anglo American’s portfolio in our world-class resource asset base in copper and premium iron ore – while retaining our crop nutrients optionality at Woodsmith – marks a major new phase in executing our strategy.

“We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction.”

The company expects the new portfolio configuration to save $1.7bn in expenses.