Anglo American sells nickel unit for up to $500m

(Sharecast News) - Anglo American on Tuesday said it was selling its nickel business to Singapore's MMG for up to $500m. The unit comprises two ferronickel operations in Brazil and two greenfield growth projects. The purchase comprises $350m in cash at completion; the potential for up to $100m in a price-linked earnout and $50m linked to the final investment decision for the development projects.

"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," said chief executive Duncan Wanblad.

In separate news, Anglo's Kumba iron ore reported adjusted core earnings of £1.5bn for the year to December 31 at an adjusted margin of 41%.

Reporting by Frank Prenesti for Sharecast.com