Proactive Investors – Anglo American (JO:) must now deliver its ‘bold simplification’ of the business in the wake of BHP Ltd’s £39bn bid approach for its rival, according to Deutsche Bank (ETR:).
Anglo claimed its plan is lower-risk and quicker to implement than BHP’s.
With a clear strategy in place, Anglo needs to show early results and adhere to its timetable to complete the simplification by the end of 2025, Deutsche said in a short note on Monday.
“Any slippage on timing could put management under serious pressure,” it added.
Despite the risks, the investment bank believes Anglo’s plan could unlock significant value and potentially lead to a share price exceeding £30 in the next 12-18 months, the investment bank said. It also notes that Anglo remains an attractive takeover target in the short- to medium-term.
