Anglo American’s restructuring provided examples what business journalism should and shouldn’t be. Business Day’s online coverage simply regurgitates the press release, while Bloomberg News provides context, explains why the restructuring is taking place, and explores the implications – including the dimsissal of two senior South African executives.
Business Day’s lead:
Anglo American has announced a number of changes across its businesses to create a more streamlined management structure and further focus the Group on its core mining portfolio.
Seven commodity business units are being created, with management teams located in the area of core geographic focus for the business unit and responsible for operational performance and project delivery. These are (etc., etc.,you get the picture….)
That is simply not good enough if Business Day wants to compete in the digital age.
Here’s how Bloomberg played the story:
Anglo American PLC said Thursday it plans to sell off a handful of businesses, oust three top managers and reorganize its management structure as the mining giant looks to focus on a core portfolio of commodities.
The announcement comes a week after rival Xstrata PLC walked away from a proposed merger of the two companies and amid continuing speculation the miner will renew its offer if shareholders think Anglo American is underperforming.
Anglo American also said Thursday it would reorganize and eliminate a layer of management, moves that will cost Philip Baum, CEO of Anglo Ferrous Metals; Ian Cockerill, head of Anglo Coal; and Russell King, chief strategy officer, their jobs.
The restructuring is a big story for South Africa. Although based in London these days, Anglo remains the granddaddy of South African companies, one of the biggest listed on the JSE and one of the country’s largest private-sector employers. Why, then, did our most important local business publication miss the real story, which is the dismissal of the South African management team?
Both Business Day Online and Bloomberg News were working to tight deadlines, so lack of time can’t be an excuse.
(Disclosure: I worked for Bloomberg as a South African correspondent from 2000 to 2004.)
PS. Fin24.com also got it spot-on:
ANGLO American, the R373bn mining business which recently survived a merger attempt by rival Xstrata, is slashing layers of management in a bid to drive costs down and streamline the business. It has also set out plans to divest from assets deemed non-core.
Among the management casualties are Ian Cockerill, the former Gold Fields chief executive who more recently headed up Anglo’s coal division, and Philip Baum, the acting chief executive of the South African business. Russell King is also leaving the company.
Fin24.com’s coverage actually was better in some ways than Bloomberg’s, in that it confirmed that Baum and Cockerill were leaving the company and not just being shoved sideways. But Fin24.com got Baum’s position wrong: he was (until today) chief executive of Anglo American Ferrous Metals. His portfolio is being sold off (Scaw Metals) and divvied up between others (the SA and Brazilian iron ore operations).