Charlotte Mathews and Bheki Mpofu
23 October 2009
Johannesburg — MAJOR restructuring moves are continuing to shake up Anglo American and Lonmin , it emerged from their September quarterly reports yesterday, reflecting pressure on commodities companies as well as unwelcome attempts by Xstrata to merge with both groups.
Global resources group Xstrata last week dropped its proposal for a "merger of equals" with Anglo American . A year ago, it walked away from a hostile bid for Lonmin, the world's third-biggest platinum miner.
Within days of Xstrata's withdrawal, Anglo American CEO Cynthia Carroll announced a major overhaul of the group's global management structure and plans to sell more assets.
As part of the management shake-up, Anglo's coal unit head, Ian Cockerill, left, as did ferrous metals head Philip Baum, and human resources and strategy head Russell King.
Asset sales will include Scaw Metals, Copebras, Cataleo and all its zinc businesses.
Anglo said it would create seven business units based in the core geographic areas for the operations. Their CEOs would report directly to Carroll.
The restructuring was expected to result in a reduction of overhead staff of about 25% and cost savings of about 120m a year.
Carroll has pledged to cut costs by 2bn by 2011.
There has been widespread speculation that after turning away from Anglo, Xstrata could revive its bid for Lonmin, in which it has retained a 24,9% stake. Asked if there had been another approach from Xstrata, Lonmin CEO Ian Farmer said he "could neither confirm nor deny" it.
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