Anglo American To Sell Off Noncore Assets
LONDON (AP) ¿ Mining company Anglo American PLC said Thursday it plans to streamline its operations and sell noncore assets, including its zinc operations, representing 11 percent of its earning base.
The announcement came a week after Anglo American saw off a merger approach by Anglo-Swiss mining company Xstrata PLC, which decided not to make a formal bid.
"Anglo has six months before Xstrata can rebid and management appears to have a renewed sense of urgency to display to shareholders that it is better placed as a stand-alone group," said Jonathan Jackson, head of equities at Killik & Co. in London.The assets marked for sale include Scaw Metals Group, producer of rolled steel and other steel products; Brazilian phosphate miner Copebras Ltda., Brazilian ferroniubium producer Catalao, and Tarmac, Britain's largest supplier of aggregates to the construction industry. These assets represented 11 percent of group earnings before interest, taxes, depreciation and amortization in 2008, Anglo American said. The company announced no timetable for sales. Anglo American also said it plans to remove a layer of its global management structure and make other efficiency measures which are forecast to yield savings of 25 percent in overheads with annual savings of $120 million.
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