LONDON (dpa-AFX) - Mining company Anglo American Plc (AAUKY.PK, AAL.L) announced Thursday that it has reached agreement with China Molybdenum Co. Ltd to sell its Niobium and Phosphates businesses for a total cash consideration of $1.5 billion. Anglo American intends to use the proceeds to reduce its level of debt.
The total consideration will be payable to Anglo American at closing, subject to certain closing and post-closing adjustments.
Niobium and Phosphates businesses are located in the states of Goiás and São Paulo, in Brazil. Together, the businesses generated EBITDA of $146 million in the year 2015.
The sale is expected to close in the second half of 2016.
The company said the deal is conditional upon customary People's Republic of China regulatory approvals, and the approval of CMOC shareholders.
Anglo American received binding commitments from the two major CMOC shareholders holding 63 percent of CMOC shares to support the transaction.
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