Skip to Content
Global News Select

Anglo American Shares Rise After Being Tipped for Takeover

By Christian Moess Laursen


Shares in Anglo American rose on Monday after being tipped by analysts for a takeover if its doesn't turn operations around and its share price continues to lag.

At 1213 GMT, shares were up 1.6% at 1.831,20, having risen as high as 1.862,20. The FTSE 100 is down 0.5%.

On Friday, the diversified miner shook the market when it cut its production guidance for the coming years, by 4% in 2024 and by a further 3% in 2025, citing operational issues at its Los Bronces copper miner in Chile and persistent logistical woes at its Kumba iron mine in South Africa.

Shares tumbled 16% on the news, adding to an already underperforming share price year-to-date, down 43% amid continuing market volatility and low demand for platinum metals and diamonds. Prices in the latter have plummeted, with futures down 15% in 2023 so far.

If Anglo American doesn't turn things around operationally and its share price continues to lag, Jefferies analysts "cannot rule out the possibility that Anglo is involved in the broader trend of industry consolidation," they said in a research note.

They noted that Xstrata, when it was 35% owned by Glencore, proposed a merger with Anglo American in 2009.

"Glencore's strategic fit [after its deal to buy the coal assets of Canadian miner Teck Resources] appears even stronger now due to operating synergies, even greater marketing benefits, and a cost of capital arbitrage," they said.

"We need to consider [the possibility of a takeover] as part of the Anglo investment case at this point," the analysts added.

The global miner has seen its markets share diminish by 33 billion pounds ($41.41 billion) since Chief Executive Duncan Wanblad took the reins in April 2022.

Representatives from both Glencore and Anglo American declined to comment when contacted by Dow Jones Newswires.


Write to Christian Moess Laursen at


(END) Dow Jones Newswires

December 11, 2023 07:39 ET (12:39 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

Market Updates

Sponsor Center