Anglo American open to takeover, says chief Mark Cutifani in report

Mining chief tells WSJ, "if somebody sees value, then there's a conversation to be had"

Anglo American open to takeover, says chief Mark Cutifani in report
Has Mark Cutifani opened the door to a multi-billion pound takeover of Anglo American? Credit: Photo: AFP

Anglo American, the world's largest platinum miner, is reportedly open to takeover offers, its chief executive has said.

In an interview with the Wall Street Journal, Mark Cutifani told the US newspaper that his job was "to create value, however that may be shown".

He added: "Our job is to do a good job with the business, and at the end of the day, if somebody sees value, then there's a conversation to be had."

A spokesperson at the London-listed mining company declined to comment further on Mr Cutifani's comments to the WSJ.

Shares in Anglo American jumped 2.66pc in London following Mr Cutifani's comments.

Despite his remarks, an obvious bidder emerging for Anglo American is unlikely given the trend for global mining companies to trim their operations amid a slowdown in demand.

Mr Cutifani replaced Cynthia Carrol as chief executive of the fourth-largest mining group in the FTSE-100 about 15 months ago but a turnaround of its operations has been slow going.

In July, the company reported a slump in production following a strike in South Africa.The five-month-long walkout resulted in a 40pc drop in quarterly output of platinum that overshadowed higher copper and iron ore production.

Rio Tinto and BHP Billiton are the two biggest miners in the FTSE 100. These companies are suffering as the majority of their profits come from selling iron ore to China.

Mining analysts from Investec estimate that every $10 (£6) per tonne drop in the iron ore price reduces Rio and BHP annual revenues by $2.8bn and $2.2bn respectively.