Anglo American plc has announced that it will de-merge its business and form a new diamond-focused company. The new business, which will include De Beers, will be the world’s leading diamond producer.
The demerger is part of Anglo American‘s objective to consolidate its portfolio and focus on its core operations, which include copper, premium iron ore, and agricultural fertilizers. The company thinks that the demerger will result in two stronger, more valuable companies, as well as increased strategic freedom for both De Beers and Anglo American.
Anglo American stated, “Having made significant progress toward finalising the sales agreement with the Government of the Republic of Botswana, Anglo American is exploring the full range of options to separate the business in order to set it up for success in unlocking full value from its new Origins strategy, world-class assets, and iconic brand.” This will give Anglo American and De Beers more strategic options for maximising value for their shareholders.”