South32 is reportedly considering bidding for US$1 billion worth of Anglo American’s unwanted assets.
It comes after Anglo American announced a massive shift in its operations late last year, with a ‘radical restructuring program’.
The plans to miner shrink its workforce by almost two thirds, from a 135,000 employee business down to less than 50,000 workers globally, according to CEO Mark Cutifani.
The company will consolidate or close a number of its assets as it focuses on what it terms ‘priority 1’ assets, cutting the overall number of assets by 60 per cent and consolidating from six separate businesses into three – De Beers, Industrial Metals, and Bulk Commodities.
Anglo American has already begun this process, earlier in the week completing the sale of all its interests in the Tarmac joint venture in the UAE, Oman, and Qatar.
This process has reportedly interested BHP spin-off South32 sending out requests to investment banks to hire an adviser for the bidding process, according to Bloomberg.
The main assets in focus are Anglo American’s niobium and phosphate businesses in Brazil.
Anglo American has declined to comment on the bidding rumours, while a South32 spokesperson told Bloomberg the miner does not comment on market speculation.
“Our primary focus is on optimising the performance of our existing operations and maximizing the value of those assets,” the spokesperson stated.