Anglo American Offloads Nickel Business In $500M Deal: Details

Anglo American Plc AAUKF entered into a deal to sell its nickel business to MMG Singapore Resources Pte. Ltd, a wholly owned subsidiary of MMG Limited, for up to $500 million in cash. 

The consideration consists of $350 million in upfront cash at completion, up to $100 million in price-linked earnouts, and $50 million in contingent cash based on the Final Investment Decision (FID) for the development projects.

The nickel business includes two ferronickel operations in Brazil, Barro Alto and Codemin, and two high-quality greenfield projects, Jacaré and Morro Sem Boné. 

Read: DeBeers Slashes Production Guidance As Anglo American Considers Another Goodwill Impairment

The upfront cash consideration is also subject to standard completion adjustments, with completion expected by third quarter of 2025. The transaction is subject to several conditions, including customary competition and regulatory clearances. 

Duncan Wanblad, CEO of Anglo American, stated that the sale is a key step in streamlining the portfolio to focus on copper, premium iron ore, and crop nutrients. 

In November 2024, Anglo American agreed to sell its Australian steelmaking coal portfolio to Peabody Energy for up to $3.8 billion. 

At that time, the company has set a target of $1 billion in cost savings by 2025 and expects an additional $800 million in recurring pre-tax benefits. The broader restructuring plan includes divesting from coal, platinum, nickel, and diamonds. 

Notably, Anglo American's nickel business is well-positioned for both stainless steel and battery value chains, comprising the Barro Alto and Niquelândia mines and the Barro Alto and Codemin ferronickel plants, which produced 39,400 tonnes of nickel in 2024.

The business also includes two promising greenfield projects: Jacaré (300Mt of resources) and Morro Sem Boné (65Mtpotential).

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