Anglo to sell business units for $1.5bn | Fin24
 
In partnership with
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • Dudu Myeni

    The former SAA chair has been declared a delinquent director for her role at the national airline.

  • Cigarette Ban

    Govt says emerging research shows smoking leads to more severe cases of Covid-19.

Loading...

Anglo to sell business units for $1.5bn

Apr 28 2016 19:30
Will Kennedy and Thomas Biesheuvel

(iStock)

Company Data

ANGLO AMERICAN PLC [JSE:AGL]

Last traded 366
Change 0
% Change 0
Cumulative volume 2458905
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Eskom uncertainty brings challenges for Anglo mine sale

Anglo shortlists Mosaic, Vale in $1.5bn Brazil sale

Anglo shareholders revolt over executive pay

Anglo's first quarter production falls at most units

Anglo American finance director to retire

Anglo American just won't sell the mines its rivals want

 

Johannesburg - Anglo American [JSE:AGL], the London-based mining giant, agreed to sell its niobium and phosphate businesses to China Molybdenum for $1.5bn in cash in its first big disposal since outlining its dramatic turnaround plan in February.

The unit that mines niobium, a metal used to make specialty steel products, operates one mine and three processing facilities. In phosphates, the deal will include a mine, processing plants, and chemical complexes. Anglo rose as much as 4% to 725 pence and traded at 718.4 pence in London.

The deal is part of a turnaround plan set out by chief executive officer Mark Cutifani after a slump in global commodity prices saw Anglo become worst performer in the UK’s FTSE 100 Index last year. It is selling more than half its mines and exiting the iron-ore and coal business to focus on its more profitable assets - diamonds, platinum and copper.

"The sale of our niobium and phosphates businesses is another positive step forward in the strategic reshaping of Anglo American that we set out in February," Cutifani said in a statement on Thursday.

Anglo, which has more the doubled in value in 2016, is seeking to raise $4bn in asset sales this year to cut its debt.

While it has already offloaded coal assets for nominal fees, this deal is the first big step to reaching that goal.

anglo amercian  |  mining
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote

Loading...