08 Jan Anglo American in advanced takeover talks with struggling Sirius Minerals
Anglo American has confirmed it is in advanced discussions with London-listed miner Sirius Minerals after proposing a takeover offer valuing the struggling company at about £386 million (US$507 million).
The 5.5p per share cash bid comes in at 34% above Sirius’ current share price, which has diminished over the last six months as the firm struggles to raise the funds required to develop its large-scale potash mine located in the Northeast of the UK.
In November, Sirius called for a strategic investor to help fund a new two-stage plan for the project, which will become the world’s largest mine for polyhalite – a naturally occurring fertiliser used in agriculture – should it be successfully developed.
Global mining giant Anglo said it had identified the project as being of potential interest some time ago, given the quality of the underlying asset in terms of scale, resource life and operating cost profile.
“The project has the potential to fit well with Anglo American’s established strategy of focusing on world-class assets, particularly in the context of Anglo American’s portfolio trajectory towards later cycle products that support a fast-growing global population and a cleaner, greener, more sustainable world,” said Anglo.