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).
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
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
-
Card Factory is a stand-out small-cap going cheapIn a digital world, we still value the personal touch. That’s good news for Card Factory, whose unique business model is suited to weather all economic storms
-
8 of the best smallholdings for sale nowThe best smallholdings for sale – from a medieval cross-passage farmhouse in Taunton, Somerset, to a former farmhouse with an orchard in the Welsh Marches
