Mining firm Anglo American announced Tuesday it would offload steelmaking coal, diamond and platinum businesses and focus on critical minerals as it counters off a massive takeover bid by Australian rival BHP.

After rejecting an improved takeover offer worth 34 billion pounds ($43 billion) from BHP, which had hoped to create a copper titan, Anglo said it was accelerating plans to simplify the group and reward shareholders in a "radical" revamp.

"Following completion of the asset review initiated during 2023, Anglo American plans to implement a number of major structural changes to accelerate delivery against its strategic priorities of operational excellence, portfolio simplification and growth," a statement said one day after news of the takeover rejection.

Anglo chief executive Duncan Wanblad added that, "A radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction."

"Anglo American's shareholders will see the full undiluted upside from these extensive changes, with the value of our copper and iron ore assets brought to the fore," he said.

Copper is essential to the world's transition to renewable energy because it is a vital component for greener technology like energy storage, electric vehicles, solar panels and wind turbines.

As a result, the price of copper has soared over the past year, and Anglo American expects the trend to continue.

Copper last month surpassed $10,000 per ton for the first time in two years, with analysts citing strong demand and tight supplies that could be stretched further by BHP's bid proposal.

On Tuesday, Anglo said it planned to offload its steelmaking coal arm and was exploring plans to divest the nickel operations.

It added that Anglo American Platinum would be demerged and that the De Beers diamond business would either be split or sold.

'Radical changes'

"These actions represent the most radical changes to Anglo American in decades," Wanblad added.

"We are taking clear and decisive action to deliver value ... in the long-term interests of our shareholders and other stakeholders."

Anglo had said that the BHP offer "significantly" undervalued the group and its prospects.

The new bid was pitched at approximately 27.53 pounds per share, up from about 25 pounds per share that had been slammed by Anglo as "highly unattractive" and "opportunistic" in April.

Shares in Anglo traded flat at 27.05 pounds in early London deals on Tuesday.

Anglo's stock has been boosted since the initial approach as traders bet on a possible bidding war with other mining giants like Glencore or Rio Tinto.

Anglo American was founded in South Africa in 1917 by the German-born industrialist Ernest Oppenheimer, 15 years after his arrival and career in London.

It is now one of the largest mining companies in the world and is listed on stock exchanges in London and Johannesburg.