Anglo American completes sale of Scaw Metals

Mining giant Anglo American has completed the sale of Scaw Metals, with the disposal of the company's South African division for 440m dollars.

The deal is the final part of a process that has raised $1.4bn for Anglo.

The buyers are a group of South African companies, financed by the government's investment financing vehicle, the Industrial Development Corporation (IDC).

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The aim of the IDC is to foster domestic manufacturing industries, with a particular emphasis on black participation.

Sipho Pityana, the Chair of Izingwe Holdings, one of the new owners of Scaw Metals said the deal would enable the group to "gradually increase black participation in the asset".

Cynthia Carroll, Chief Executive of Anglo American, said she was "particularly pleased" with the manner of the sale, that she claims demonstrates Anglo's "ongoing commitment to South Africa". She also noted it brought the total proceeds from the sale of non-core assets to $3.7bn since 2010.

BS