Anglo American has announced the sale of Scaw South Africa, completing its divestment of the Scaw Metals Group.
The company has sold Scaw South Africa to an investment consortium led by the Industrial Development Corporation (IDC) of South Africa, Izingwe Holdings, Shanduka Resources and the Southern Palace Group of Companies.
Izingwe Holdings, the Southern Palace Group of Companies and Shanduka Resources are all Anglo American’s partners in Scaw. The IDC is wholly owned by the South African government under the supervision of the Economic Development Department.
The consortium has purchased Scaw South Africa for R3.4 billion ($440 million).
The transaction follows the sale of Scaw’s international businesses, Moly-Cop and AltaSteel, to Onesteel in December 2010 for $932 million.
Commenting, Cynthia Carroll, chief executive of Anglo American, said: "The sale of Scaw brings the total announced proceeds from our divestments of non-core assets to $3.7 billion since 2010, maximising value from these businesses for our shareholders. I am particularly pleased that the manner in which we conducted this divestment reinforces our ongoing commitment to South Africa.
“This acquisition will contribute positively to the South African government’s industrial development objectives by enabling the IDC to play a meaningful role in the strategically important steel industry. I wish to thank the management team and employees at Scaw for their support during this process and wish them all the best under the ownership of the consortium."
Anglo American said it was committed, along with the consortium, to transferring ownership in a way that limits the impact on employees, partners, contractors, suppliers and customers.
The transaction is subject to regulatory approvals, and is expected to be completed during the course of 2012.
