Anglo American to sell non-core assets worth $7 billion
26 Oct 2009
Anglo American Plc, one of the world's major diversified mining entities, plans to sell its non-core assets in order to focus on its core mining portfolio and streamline the group's management structure.
The restructuring move comes a week after Swiss rival Xstrata pulled out of its $68 billion merger deal, which can re-bid only after six months, as per UK's Takeover Panel regulations. (See: Xstrata abandons Anglo bid, for now)
The London-based miner said in a statement that the assets identified for sale include Scaw Metals, a maker of various steel products with operations in North and South America and South Africa, Copebras, a Brazilian producer of phosphate fertilizers, Catalao niobium mines in Brazil and the group's portfolio of zinc assets in South Africa and Ireland.
In addition, the group plans to sell Tarmac, UK's market leader in aggregates, asphalt and concrete. Tarmac was put on block in 2007, though the sale process was stuck following the global credit crisis. Anglo American acquired Tarmac for £1.2 billion in 1999.
These non-core assets contributed approximately 11 percent of the group's 2008 EBITDA, the statement said.
Although valuation of the saleable assets has not been disclosed, analysts estimate the total worth at around $7 billion.