Fitch: Anglo American's De Beers move a boon

Fitch Ratings said that Anglo American plc's (BBB+/stable/F2) plan to acquire an additional stake of up to 40% in DB Investments and De Beers SA is a logical move, which will simplify the ownership structure of De Beers and enable Anglo to fully consolidate the group.

Fitch said that it believes that consideration for the transaction of up to $5.1 billion can be accommodated within Anglo's existing credit profile and the group's existing BBB+ long-term issuer default rating is unaffected by Anglo's announcement.

The proposed transaction increases Anglo's exposure to the largest player in a consolidated market, which has strong participation across the diamond value chain and a group of mining assets with sound cost positions, the agency added.

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