Anglo American to Raise $4.7bn by Selling Assets

18 January 2011 (Last Updated January 18th, 2011 18:30)

Anglo American will sell some of its assets to raise £3bn ($4.75bn) as part of its strategy to cut costs and focus on core mining. The company plans to sell Tarmac Building Products, which is likely to be valued at around £1.7bn ($1.8bn), and its 74% stake in Peace River Coal in Cana

Anglo American will sell some of its assets to raise £3bn ($4.75bn) as part of its strategy to cut costs and focus on core mining.

The company plans to sell Tarmac Building Products, which is likely to be valued at around £1.7bn ($1.8bn), and its 74% stake in Peace River Coal in Canada for around £300m ($477m), according to domain-b.

Subsequent to a failed acquisition attempt by Swiss miner Xstrata, the company announced in 2009 its restructuring plans and intention to sell non-core assets worth $7bn to cut costs and bring down debts.

Accordingly, Anglo American has sold off assets worth about $3bn, covering its zinc business, five Australian coal mines, steel business and Tarmac Europe.