Miner Anglo American could become takeover target, say analysts – by Alex Lawson (The Guardian – December 11, 2023)

https://www.theguardian.com/

Shares are down almost 45% this year, and firm took further pummelling on Friday after production outlook warning

The mining company Anglo American could become a takeover target after warning of weaker than expected production, analysts believe. Shares in the London-listed company rose nearly 1% to £18.17 on Monday, valuing the business at £24.3bn, after a pummelling last week that left it exposed to a potential bid.

Anglo’s stock is down nearly 45% this year, and the shares suffered their biggest one-day fall since the financial crisis on Friday when the miner slashed its production outlook.

The company, one of the 20 biggest on the FTSE 100, said difficulties at its mines in Peru and Chile had led to the cut in its copper production forecasts. Anglo is also listed in Johannesburg. Brokers at the brokerage firm Jefferies and the banks Barclays and RBC have cut their target price for the stock in response.

Analysts noted that £30bn had been lost from the value of Anglo, since Duncan Wanblad, a company insider, took over as chief executive from longstanding boss Mark Cutifani in April 2022. Jefferies analysts have said that Anglo may become “involved in the broader trend of industry consolidation” and suggested mining rival Glencore could be a potential suitor.

For the rest of this article: https://www.theguardian.com/business/2023/dec/11/miner-anglo-american-could-become-takeover-target-say-analysts