Sydney/London — Anglo American was expected to finalise a $1bn-plus sale of its Australian coal assets to a group headed by private equity group Apollo Global Management in the coming weeks, three sources with knowledge of the deal said.
"Anglo American and Apollo entered into a two-week exclusivity period due to expire next week," said one of the sources in continuous contact with advisers to the deal. "We think it is going to go to Apollo next week."
Another source, however, said it would still be weeks before any deal was finalised.
Anglo American in Australia declined to comment. Apollo did not immediately respond to a request for comment. Anglo American, like its peers, is selling off assets after a prolonged commodities slump left it with too much debt.
CE Mark Cutifani has said the company will focus on three commodities — copper, diamonds and platinum.
Selling assets has taken longer than expected as a strong recovery in coal and other commodities in 2016 has reduced pressure on miners to sell, while increasing pressure from shareholders to achieve the best price. Analysts and the sources who spoke to Reuters on condition of anonymity said, however, that Anglo’s divestment strategy was still in place.
"Cutifani and Anglo are 100% committed to the sale," one source said.
Reuters
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