Anglo American plc announced that it will demerge its business, creating a new company focused on diamonds. The new company, which will include De Beers, will be a leading global diamond producer.
The demerger is part of Anglo American’s strategy to simplify its portfolio and focus on its core businesses of copper, premium iron ore, and crop nutrients. The company believes that the demerger will create two stronger, more valuable companies, and will improve strategic flexibility for both De Beers and Anglo American.
Anglo American said, “Having made significant progress towards 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, its world-class assets and its iconic brand. This will provide both Anglo American and De Beers with a new level of strategic flexibility to maximise value for both company’s shareholders.”