Anglo American shareholder, Legal & General Investment Management (LGIM) is supporting the break-up proposal proposed by the miner as the deadline for BHP Group to submit a formal acquisition offer approach.
The radical plan to divest Anglo's less profitable coal, nickel, diamond, and platinum businesses was implemented in response to its rejection of two all-share takeover approaches from BHP, the world's largest listed mining group.
BHP had proposed a $43-billion deal on the condition that Anglo first spin off its South African operations.
"The plan outlined by Anglo American is a radical but attractive strategy to create value for long-term investors," LGIM head of climate solution Nick Stansbury was quoted as saying to Bloomberg.
LGIM is one of Anglo's largest investors, with about 2% ownership, according to LSEG data.
"The execution of this plan will be challenging for management to deliver, but we are confident in their ability to do so over time," he said.
According to UK takeover regulations, BHP needs to submit a binding bid for Anglo by 17:00 GMT on Wednesday, or it will be compelled to withdraw for a minimum of six months.
If the companies discover an agreement in the interim, an extension may be granted.
BHP chief executive Mike Henry informed investors last week that Anglo shareholders must evaluate the advantages of a merger between the two firms and choose which management has a superior track record of project execution and return generation.
In addition, Henry expressed his disappointment with the Anglo board's persistent refusal to participate.
"Our discussions with Anglo American indicate that their board are acting appropriately with regards to the level of engagement they are having with BHP," Stansbury said in an emailed statement.
LGIM does not perceive a compelling rationale for the Anglo board to alter its stance until BHP provides a reasonable premium to the underlying fair value of Anglo's assets.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
