Anglo American, the parent company of De Beers, is now more susceptible to a takeover bid than it was in May. At that time, the company successfully fended off an approach from rival miner BHP.
Since May, Anglo American’s share price has fallen nearly 25%. Additionally, the company experienced a significant setback with a fire at its Grosvenor coking coal mine, one of its key assets. As a result, Anglo announced plans to sell off several assets to concentrate on more profitable commodities, particularly copper.
The company intends to divest or demerge its diamond (De Beers), platinum, and nickel divisions. In May, Anglo rejected BHP’s increased offer of $49 billion. However, BHP is permitted to make another offer in November. Analysts speculate that other companies, such as Glencore and Rio Tinto, may also consider making bids.
According to financial news outlet This Is Money, the current situation makes Anglo American more vulnerable to a takeover at a potentially lower price. Investment director Russ Mould from AJ Bell noted that a declining share price could attract a predator willing to acquire the company for a price that balances risk with potential rewards.
In summary, Anglo American’s recent challenges and declining share price could lead to renewed interest from potential buyers in the near future.
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