HomeBase MetalsAnglo re-organisation not a reaction to Xstrata merger bid

Anglo re-organisation not a reaction to Xstrata merger bid

Cynthia Carroll,
Anglo American
London, England — MININGREVIEW.COM — 29 October 2009 – Mining giant Anglo American Plc CEO Cynthia Carroll has gone on record as confirming that the reorganisation that included the departure of three divisional heads, and a plan to sell various assets, was not a reaction to the abandoned US$48.9 billion (R390 billion) takeover bid from Swiss-based Xstrata Plc.

“Anglo will work through a list of proposed asset sales over the next few years, and won’t sell operations such as the Tarmac asphalt unit cheaply,” she told Radio 702 in an interview that is on the station’s Website.

The London-based company plans to retain its stake in De Beers, she added. “We continue to see diamonds as a core business,” she said. “That’s our thinking.”

The reorganisation “’ the biggest since Carroll took over as CEO in March 2007 “’ will involve the sale of assets including the Scaw Metals steel unit and zinc mines.

Carroll added that proposed increases in South African electricity prices are a “serious concern.” The government has said it will back an application by state-owned power utility Eskom Holdings Limited to raise tariffs by 45% a year for three years.