Anglo American Cuts Dividend 64% After $2.3B De Beers Writedown, Teck Merger Advances
Anglo American posted a $3.7 billion loss after a $2.3 billion De Beers writedown, taking total impairments to $6.8 billion and cutting its dividend by 64% to 23 cents per share (about $200 million). Shareholders approved a merger of equals with Teck Resources, combining Teck’s Quebrada Blanca mine with Anglo’s copper portfolio, pending regulatory approval.
1. Impairment and Losses
Anglo American recorded a $3.7 billion loss in its latest quarter after writing down $2.3 billion on its De Beers diamond business, bringing total impairments over the past year to $6.8 billion.
2. Dividend Reduction
To preserve balance sheet strength, the company cut its dividend by 64% to 23 cents per share—reducing annual payouts from approximately $800 million to around $200 million.
3. Merger with Teck Resources
Shareholders have approved a merger of equals with Teck Resources that is designed to reshape the combined group into a copper-focused producer, with completion contingent on final regulatory clearances.
4. Combined Copper Portfolio
The merged entity will unite Teck’s Quebrada Blanca open-pit copper mine in Chile with Anglo American’s copper and iron ore operations, positioning it among the largest pure-play copper producers.