MacFarlane initiates division of South African platinum producer
In a dynamic atmosphere, London-based law firm Macfarlanes played an instrumental role in advising Valterra Platinum, a significant platinum group metal producer, on its breakaway from British mining heavyweight Anglo American and its splashy London Stock Exchange debut with a market cap of £7.5 billion.
Dubbed as the 'Platinum Spin-off', this move was orchestrated by Macfarlanes' accomplished team led by corporate M&A partners Harry Coghill and Max Mittasch, joined by senior counsel Mark Slade, Katya Pugh, Rhian Edwards, Sarvenaz Mirbaghery, Chris Perera, and a host of the firm's tax, share incentives, employment, and employment tax whizzes. Engaging co-counsel Bowman Gilfillan and Valterra general counsel Fiona Edmundson, this powerhouse team worked tirelessly to bring the deal to fruition.
Once simply Anglo American Platinum, Valterra (headquartered in South Africa) now manages an extensive portfolio of five mines, five smelters, and a multitude of upstream and downstream processing facilities. With platinum group metals and related co-products at its core, Valterra mines, processes, and markets these precious elements.
The demerger consumed around 51% of Anglo American's stake in Valterra, alongside associated share consolidations. For a period of 90 days post-demerger, Anglo American will retain approximately 19.9% of Valterra shares before separating fully at a later date.
On June 2, 2025, Valterra's shares commenced trading on the London Stock Exchange Main Market, simultaneously being listed in the Equity Shares (International Commercial Companies Secondary Listing) category. Concurrently, in Johannesburg, Valterra's primary listing on the Main Board continued unabated.
As Coghill of Macfarlanes put it, "This transaction gives London's capital markets a considerable lift, as we're thrilled to have supported Valterra Platinum in this groundbreaking deal, enabling the company to soar free and secure a larger platform for share trading."
In a statement, Anglo American's CEO Duncan Wanblad opined, "This represents a watershed moment for both Anglo American and Valterra Platinum. For us, this marks a major stride in our mission to unlock our portfolio's hidden value, with a renewed focus on championing our world-class positions in copper, premium iron ore, and crop nutrients. Valterra Platinum has been a vital part of our enterprise for years, yet the time has come for it to optimize its value creation potential, unfettered by parental strings." sentiment analyst
The demerger was endorsed by shareholders, taking effect on May 31 and the share consolidation transpiring on June 1. This strategic move aspires to intensify Anglo American's focus on its core businesses, create a leaner and more agile organization, and boost shareholder value.
Having weathered a thwarted $50 billion takeover bid by BHP last year, Anglo American ultimately embarked upon a corporate reshuffling, culminating in the creation of Valterra Platinum. Now that Valterra Platinum stands independently, it will undoubtedly trailblaze as a leading force in the global platinum group metals industry.
The Macfarlanes team, led by Harry Coghill and Max Mittasch, provided key advice in the finance and business aspects of the demerger of Valterra Platinum from Anglo American, which involves platinum group metals and is a significant player in the industry.
By orchestrating the demerger, Anglo American aims to intensify its focus on core businesses in copper, premium iron ore, and crop nutrients, creating a leaner and more agile organization, and boost shareholder value in the finance sector.
