Diversified miner Anglo American Plc. (LON:AAL), announced today it has sold the South African Scaw Metals Group business for $430 million to a group of partners, on a move to refocus on its core mining business.
The London-based company said the consortium that acquired Scaw, an integrated steelmaker that produces components mining, rail, power, offshore oil and gas, construction and other industrial sectors, is led by South Africa’s State-owned Industrial Development Corporation (IDC).
The new owners include Shanduka Resources (Pty) Ltd., Izingwe Holdings (Pty) Limited, and the Southern Palace Group of Companies (Pty) Limited.
Anglo, which controls the world’s biggest platinum producer, finalized the sale of Moly-Cop and AltaSteel, Scaw’s operations in Canada and Chile, in January last year for $1.08 billion.
CEO Cynthia Carroll explained that the company has sold paper, zinc and sugar assets as it builds iron-ore, copper and nickel mines in South America to benefit from the increasing prices of those minerals. The Scaw disposal, added Carroll, brings non-core asset sales since 2010 to $3.7 billion.
The transaction is subject to customary closing conditions such as regulatory approvals in South Africa including but not limited to competition clearance, and will be completed this year.