MMG Singapore Resources will become the new owner of Anglo American’s nickel business in a $500 million deal.
Anglo’s nickel business includes two ferronickel operations – Barro Alto and Codemin – and two greenfield growth operations – Jacaré and Morro Sem Boné – in Brazil.
The agreement will see MMG pay an upfront cash consideration of $350 million at completion, the potential for up to $100 million in a price-linked earnout, and contingent cash consideration of $50 million linked to the development projects’ final investment decision.
Anglo American chief executive Duncan Wanblad said the sale process was highly competitive and that Anglo is pleased with the outcome.
“The sale of our nickel business after a highly competitive process marks a further important milestone towards simplifying our portfolio to create a more highly valued copper, premium iron ore, and crop nutrients business,” Wanblad said.
“MMG is well-respected as a safe and responsible operator and we believe our agreement represents a strong outcome not only for our shareholders, but also for our employees and Brazilian stakeholders. We will work together to ensure a successful transition.”
MMG chief executive Cao Liang said the company was excited by the acquisition.
“This is a strong business with a talented team, growth potential and demonstrated excellence in sustainability performance and we look forward to continuing this positive legacy,” Liang said.
“MMG and Anglo American have a long track record of close collaboration and shared values demonstrated through our commitment to ICMM principles. We look forward to working together towards completion.”