Anil Agarwal to buy GBP2 billion Anglo American shares

Anil Agarwal

An Indian billionaire who goes by the name Anil Agarwal, said he will buy up to 13% shares of Anglo American. This is a surprising news that will change the board room of the blue chip.

Anglo American, the world’s largest producer of platinum as at 2016 with over 40% of all platinum produced and exported across the world.

Anil Agarwal will be paying a whooping GBP2 billion which is approximately ZAR31.51 billion. Las year he tried to merge his company Vedanta Resources with Anglo American, but the merger collapsed during negotiation.

After the completion of the transaction, Anil Agarwal will become the second largest shareholder in Anglo American, trailing South Africa’s Public Investment Corporation (PIC). To see the deal through, JP Morgan was appointed as the bookrunner for the transaction.

Anil Agarwal currently owns 69% controlling stake in Vedanta Resources. His merger with Anglo American was rejected last year prompting him to take another route into the conglomerate.

He has denied that he will be doing a hostile takeover of the company after he becomes the second largest shareholder in the company.

In an interview he had at the World Economic Forum in Davos, Switzerland, Anil Agarwal said ““This is an attractive investment for our family trust. Anglo American is a great company with excellent assets and a strong board and management team who are executing a focused strategy to drive shareholder value. I am delighted to become a shareholder in Anglo American.”

“It was a good match. One and one wasn’t going to be two, but 11” he said in the interview.

Anglo American is one of the largest mining group with operations across Southern Africa, South America including De Beers, the diamond company.

The over 100 year old company was founded by the Oppenheimer family. The group’s headquarters is based in London.