Deals
Anglo's Future Thrown in Question as Billionaire Grabs Stake
- Agarwal says he won’t make a takeover offer for Anglo American
- ‘Not clear to us what the end game is,’ says Jefferies analyst
An employee monitors the processing of iron ore along conveyor belts in Shishen, South Africa.
Photographer: Nadine Hutton/BloombergThis article is for subscribers only.
In its 100-year history, Anglo American Plc has endured commodities booms and busts, South African apartheid and bitter boardroom disputes. Now the British mining giant is threatened by the ambitions of Anil Agarwal, an Indian scrap-metal trader turned billionaire mining tycoon.
In a surprise announcement on Wednesday, Agarwal said he plans to buy a stake of as much as 2 billion pounds ($2.4 billion) in Anglo, representing 13 percent of the company. Agarwal’s ultimate motivations and how he plans to wield power as the second-largest shareholder are still unknown. Still, there’s speculation that he’s likely to take an active role.