Anglo American chief not going for any major corporate split

Anglo American chief not going for any major corporate split

Mark Cutifani (Screenshot via YouTube)

Less than a week after Anglo American (LON:AAL) boss Mark Cutifani told The Wall Street Journal he was “very open” to takeover offers, he has announced that a big corporate break-up à la BHP Billiton (ASX:BHP) is definitively not in his books.

Instead Cutifani, who became chief executive in April last year, told FT.com (subs. required) he prefers a “piece-by-piece” asset sale.

Anglo’s chief, who has been implementing drastic cost-cutting measures for a bit over a year, is already in the process of getting rid of six of the group’s South African platinum mines.

The miner also struck a deal with building materials supplier Lafarge to sell its 50% stake in their Lafarge-Tarmac joint venture, for US$1.5 billion.

Among other assets that could be sold are a stake in its Quellaveco copper project in Peru, but analysts agree the company is more likely to try finding a partner to go ahead with mine construction.

Anglo American,  for now still the largest platinum producer, also controls copper, coal, iron ore, nickel and diamond mines and has a market value of about $36 billion.