Anglo American to raise £3 billion through assets sale in 2011
17 Jan 2011
Anglo American, one of the world's largest diversified mining companies, is planning to raise £3 billion ($4.75) this year by selling some of its assets as part its earlier plan to cut costs and focus on its core mining portfolio.
The sale includes its Tarmac Building Products Ltd, UK's market leader in aggregates, asphalt and concrete business that is likely to bring around £1.7 billion and its 74.83-per cent stake in Peace River Coal in Canada for around £300 million.
Tarmac was put on block in 2007, though the sale process was stuck following the global credit crisis.
Anglo American is said to have asked its financial adviser, Goldman Sachs, to look for potential buyers for Tarmac, which it had acquired in 1999 for £1.2 billion.
Interested buyers could include private equity groups and Swiss cement maker Holcim, Mexico's Cemex, Lafarge of France and CRH of Ireland.
After a failed acquisition attempt in late 2009 by rival Swiss miner Xstrata, London-based Anglo American under chief executive Cynthia Carroll had announced the company's intention to sell non-core assets worth around $7 billion to cut costs and bring its debt down, currently standing at £7 billion. (See: Anglo American to sell non-core assets worth $7 billion)
Since announcing its restructuring last year, Anglo American has sold off assets worth more than $3 billion covering its zinc business, five Australian coal mines, steel business and Tarmac Europe.
