The British mining corporation Anglo American has reached an agreement to sell its Australian coking coal business to the private company Dhilmar Limited. The deal is valued at $3.88 billion, allowing Anglo American to complete its exit from the metallurgical coal segment.
This is reported by Finway
Details of the deal and sale conditions
According to the agreements reached, upon completion of the transaction, Anglo American will receive an upfront payment of $2.3 billion. Additionally, there is a contingent payment based on the market price of coking coal, which could amount to up to $1.57 billion. The funds received from this deal will be directed towards reducing the company’s net debt.
The final closing of the deal is expected by the first quarter of 2027. To complete the transaction, approval from antitrust and other regulatory authorities is required, as well as compliance with preemptive rights conditions.
Strategic restructuring and implications for Anglo American
This move is part of Anglo American’s strategy to restructure its asset portfolio ahead of the planned merger with Teck Resources. Along with last year’s sale of its stake in the Jellinbah joint venture, for which the company received about $1 billion, the total cash inflow from exiting the coking coal business will reach $4.9 billion.
“The previous buyer – Peabody – withdrew from the deal regarding the same asset portfolio last August, citing an incident at the Moranbah North mine as the reason. Anglo American stated that it will continue arbitration proceedings with this company.”
Thus, Anglo American is making a significant step towards optimizing its business and focusing on key areas of activity.