LONDON, May 14 (Reuters) - Anglo American laid

out plans on Tuesday for a potential break-up of the group via a

demerger or sale of its steelmaking coal, nickel, diamonds and

platinum businesses as it tries to fend off a takeover bid from

BHP Group ( BHP ).

The announcement comes a day after the London-listed miner

rejected a raised $43 billion offer from BHP, saying it

continued to significantly undervalue the company and was

"highly unattractive" for its shareholders.

In a statement on Tuesday, Anglo said it was going to divest

its steelmaking coal assets, demerge its platinum unit in South

Africa, explore options for its nickel mines, and divest or

demerge diamonds business De Beers. The group expects the new

portfolio configuration will lower costs by $1.7 billion.

"We expect that a radically simpler business will deliver

sustainable incremental value creation through a step change in

operational performance and cost reduction," Anglo CEO Duncan

Wanblad said.

Anglo shares were down 1.2% at 26.74 pounds by 0820 GMT.

Australian BHP, the world's biggest listed miner, had no

immediate comment on Anglo's plan.

The latest push for consolidation in the mining sector has

been driven by strong appetite for copper and other metals

central to the energy transition.

Wanblad said he expects the demerger from South African

platinum unit Anglo American Platinum, known as

Amplats, to be completed by the end of 2025, and that Amplats

shareholders would not bear its costs.

"I want to reiterate that I think the (platinum group

metals) business is an excellent business... (and that) the

diamond business is an excellent business, and I expect both of

them to do extremely well," Wanblad said on Tuesday.

"But the value of them within the Anglo-American portfolio

is compromised, and this is the best solution for shareholders."

BHP's offer to Anglo American shareholders of 27.53 pounds

per share, up from 25.08 pounds previously, required Anglo to

sell its shares in iron ore and platinum assets in South Africa,

a structure Anglo says is unattractive.

Wanblad said the divestment would be "completely different"

in terms of time and complexity to the BHP proposal.

Johannesburg-listed shares in Amplats traded down around 10%

in early trade on Tuesday after news of the demerger plan.

Anglo also said on Tuesday it will slow the development of

its Woodsmith fertiliser project in northeast England and look

for strategic partners. First production at Woodsmith will be

pushed back from 2027, Wanblad said.

SELF-HELP

Anglo has been meeting investors since BHP's initial

approach in April, and after a review of all of its assets

initiated in February in response to a 94% plunge in annual

profit and writedowns at its diamond and nickel operations.

"The concern with the self-help plan announced this morning

will be that it is too little too late," MKP Advisers said in a

note.

"There is no timescale attached to most of the plans and it

has been clear to most that many of the potential disposals

across the portfolio are simply tough to execute as there are no

interested parties."

Anglo shareholder Aegon Asset Management said it welcomed

the strategy revamp, however, saying it appears to give

investors "a marked simplification of the group with over 50% of

profits coming from copper, and a stronger balance sheet."

Wanblad said on Tuesday the divestment of Anglo's

steelmaking coal operations could move rapidly, given the

interest that is available.

News that the group would seek to divest its coking coal

mines would relieve Japanese steelmakers, who this week sounded

the alarm about Australia's top quality metallurgical coal

supply becoming concentrated in the hands of a single producer.

($1 = 0.7966 pounds)

(Additional reporting by Melanie Burton in Melbourne, Sinead

Cruise in London and Eva Mathews; Writing by Jan Harvey; Editing

by Nivedita Bhattacharjee, Kirsten Donovan, Sonali Paul and

Catherine Evans)