Anglo American is engaged in advanced discussions to acquire Sirius Minerals for £386mn ($505.6mn), putting in an offer at a 34pc premium of the latter’s closing share price on Jan 7.
The offer includes acquiring Sirius’s potash mine—one of the world’s largest—which is in line with the South Africa-headquartered British miner’s strategy to diversify beyond metals mining.
Sirius’ Board plans to accept Anglo American’s offered price once the latter confirms its bid to acquire the company. Anglo American is required to make a firm announcement of its intentions to buy Sirius by Feb 5, 2020.
The deal will likely save the mine’s development—it was running out of financing and at risk of 1,200 jobs of lost. Sirius was valued at more than $2.3bn until late 2018 when its funding plans went awry.
Anglo American’s portfolio of mining operations and undeveloped resources include copper, iron ore, nickel and manganese, and platinum mines. The diversified resources provider also mines for diamonds and coal.