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Anglo American plc, South Africa’s largest employer and one of the world’s largest mining companies, added a further US$443 million of underlying earnings from its’ De Beers holdings.
The announcement was made after De Beers posted US$968 million for the full year ending 31st December 2011. Anglo American holds 45% majority interest in the unquoted Luxembourg-based diamond producer.
Differences in accounting policy added a further US$17 million to US$985 million, where Anglo American based its earnings.
This is a further addition to the US$1.462 billion underlying earnings reported through its’ 65.3% interest in Kumba Iron Ore Limited, a listed company on the Johannesburg Stock Exchange.
De Beers Acquisition
In November 2011, Anglo American had agreed to purchase the remaining 40% stake of the Oppenheimer family for US$5.1 billion, which will raise the company’s stake to 85% and become the largest diamond distributor.
The acquisition is now pending and under review by regulatory bodies and will not be concluded until the second half of 2012. The Government of Botswana, however, has pre-emptive rights over De Beers’ shareholdings.
De Beers was founded in 1888 and was later controlled by Sir Earnest Oppenheimer in 1927, who founded Anglo American.
The Oppenheimer family had resisted Anglo American’s bid for a takeover for years, but decided to exit from De Beers, which it held for more than 80 years, in what it called “a momentous but difficult decision”.
Anglo American is scheduled to report its 2011 full year results on 17th February 2012.
At 9:00 AM GMT, shares of Anglo-American at the London Stock Exchange were down 63 pence, or 2.2%, to 2,797.00 pence.
