LONDON (dpa-AFX) - Apollo Global Management LLC (APO) and Xcoal Energy & Resources LLC are close to buy Anglo American Plc's (AAUKY.PK, AAL.L) Australian metallurgical coal assets after beating out competition from rivals including BHP Billiton Ltd., according to reports citing people familiar with the matter.
The reports noted that the deal may ultimately value the assets at more than $1.5 billion. The agreement to buy the Moranbah and Grosvenor mines in Queensland includes a so-called contingent value right, which could entitle Anglo to further payments depending on the future price of coking coal.
London-based Anglo extended final negotiations after the price of coking coal, used to make steel, more than doubled this year. No final decisions have been made and the deal may still fall apart, the reports said.
Copyright RTT News/dpa-AFX