Anglo American Sells Assets in Brazil for $1.5 Billion
April 28 2016 - 3:40AM
Dow Jones News
LONDON—Anglo American PLC on Thursday said it has agreed to sell
its niobium and phosphates businesses in Brazil to China Molybdenum
Co. Ltd for $1.5 billion, marking another step in its quest to sell
noncore assets and pare back debt amid a volatile commodities price
environment.
The sale is in line with Anglo's plans, detailed in February, to
sell more than half of its mines to focus on a smaller group of
operations that can turn a profit even in a commodities downturn.
Together, the aforementioned businesses generated earnings before
interest, taxes, and depreciation of $146 million last year.
"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," Chief Executive Mark Cutifani
said.
Anglo American, the world's fifth largest diversified miner by
market capitalization, plans to use the proceeds to reduce net debt
to its targeted level of $10 billion by year-end.
The transaction is conditional upon regulatory approval from
China. The deal is expected to close in the second half of
2016.
Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
April 28, 2016 03:25 ET (07:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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