Anglo American on Monday said it would sell its remaining portfolio of steelmaking coal mines in Australia to Peabody Energy for up to US$3.775 billion in cash, as the mining giant has embarked on a major restructuring of its business. With the deal announced today, Anglo American expects to generate up to US$4.9 billion in aggregate gross cash proceeds from its coal assets, including the already announced sale of Anglo American’s interest in Jellinbah for about US$1.1 billion.
Anglo American, which has been a target of three unsolicited takeover bids from BHP, is looking to unlock significant value from its portfolio and accelerate the delivery of “consistently stronger shareholder returns” via sales or demergers of Anglo American Platinum and the diamond business De Beers, as well as the nickel and steelmaking coal assets.