- Anglo American (OTCQX:AAUKF, OTCPK:AAUKY) agrees to sell its niobium and phosphates businesses in Brazil to China Molybdenum for $1.5B, the miner's latest move in selling non-core assets and trim debt.
- The niobium and phosphates businesses were considered one of Anglo’s more profitable divisions, but they contributed only 5% of the company’s total $2.2B in EBIT last year.
- The deal is conditional upon regulatory approval from China.
- BofA Merrill Lynch analysts say they had considered a potential valuation of $800B-$1.1B for such a deal, "so $1.5B is a very positive outcome vs. our expectations.”
- Now read Bloomberg: Anglo shortlists Mosaic, Vale in $1.5B Brazil sale