British mining company Anglo American (LON:AAL) on Friday said it sold its remaining 19.9% stake in South African mining company Valterra Platinum for about $2.5 billion, a move that reduces its net debt to $8.3 billion from $10.8 billion reported in the first half of 2025 and cuts its net debt-to-EBITDA ratio to 1.3 times from 1.7 times.
Shares of Anglo American and Valterra Platinum were up 0.8% and 1.8%, respectively, at 06:13 ET (10:13 GMT).
The sale, completed immediately after a lock-up period expired, was priced at an 8.6% discount and executed in a single block.
“The sale was expected, but we believe it has been done at a good price with the shares up 30% since spin, as well as cleanly, by doing it all in one go,” RBC analysts said in a note.
Valterra shares have risen 30% since the June separation from Anglo American and, despite the size of the placing, the company was the top performer in the platinum group metals sector on the day of the sale.
Anglo American said the restructuring has so far delivered $1.3 billion in cost savings by the end of 2024 and remains on track to reach $1.8 billion in 2026.
The company is also considering further portfolio adjustments. Potential asset sales include De Beers for an estimated $1.8 billion, steelmaking coal for $2.4 billion, nickel for $500 million and a 30% stake in the Woodsmith project for $600 million.
If completed, these transactions could reduce net debt to about $3 billion with only a modest impact on earnings.
Brazil’s antitrust authority Cade has launched an investigation into the proposed $500 million sale of Anglo American’s nickel assets to MMG after Corex Holding filed a complaint.
Corex said it submitted a $900 million bid that was rejected and raised concerns about potential market concentration.
“The concentration concerns are valid given China has 60–70% of the nickel complex, but far too late in our view, and an additional 1% of global mine supply is not going to change that,” RBC said.
Valterra, now fully independent, is positioned to pursue its own strategy. The company said dis-synergies from the separation are estimated at R200 million per year, down from a prior forecast of R500 million.
It expects R1 billion in annual optimization benefits in 2026, rising to between R1.0 billion and R1.5 billion annually from 2027.
“The overhang on Valterra Platinum is now cleared, and it is entirely free to pursue its own strategic path,” RBC added.
The sale closes Anglo American’s chapter as a shareholder in Valterra Platinum and advances its wider restructuring program, while Valterra begins to operate without its former parent on the register.
Source :
https://www.investing.com/news/stock-market-news/anglo-american-cuts-net-debt-23-after-25-bln-valterra-stake-sale-4226277
