Indian tycoon targets $2.4 billion stake in Anglo American

Indian tycoon targets $2.4 billion stake in Anglo American

Thriving mining company Anglo American will be subject of a US$2.4 billion bid from Indian billionaire Anil Agarwal.

The businessman is looking to purchase a 12% stake in Anglo, who’s share price rose 9% on the FTSE 100 following the news, on top of rises close to 300% over 2016.

The firm, who’s interests lie in platinum, diamonds, copper, nickel, iron ore and coal mining recently announced earnings of $126 million during the 2016 financial year, prompting Agarwal to bid for a share in the company.

Agarwal, the founder and chairman of fellow mining firm Vedanta Resources released a statement following the bid.

“Anglo American is a great company with excellent assets and a strong board and management team who are executing a focused strategy to drive shareholder value.”

Vedanta also surged on the stock market after the news of the bid, with shares closing up 8% yesterday.

Agarwal’s substantial financial interest in Anglo American is a further indication of a revival in the global mining industry, after a period of reduced activity.