Brazil's Pinheiro Neto Advogados and the New York and Toronto offices of Osler, Hoskin & Harcourt LLP have helped China Molybdenum buy assets from Anglo American worth US$1.5 billion, in the largest divestment by the UK miner since it announced it would retreat from diversification to cut costs.
Anglo American hired Linklaters' London office and worked with Lobo & Ibeas in Brazil.
The US$1.5 billion price tag makes the sale one of the biggest M&A transactions to take place in the Brazilian mining industry in recent years, according to Lobo & Ibeas partner Daniela Bessone. "It follows a Brazilian M&A market trend of increasing investments by Chinese companies in the acquisition of energy and natural resources companies and also reflects the recovery of the mining industry's confidence in the growth of commodity prices," she says. Global commodity prices have had a rocky 12 months, but monetary stimulus in China helped prices rise significantly in April.
The UK company sold its niobium and phosphates businesses in Brazil to the Chinese buyer. The businesses are based in the states of Goiás and São Paulo.
The sale is the largest by Anglo American since it announced a divestment strategy aimed at improving cash flow, which will eventually see it part ways with more than half of its mines the world over. It is expected to put up to US$4 billion worth of assets on the market over the course of this year. Meanwhile, China Molybdenum is the largest molybdenum producer in China. Molybdenum is a mineral commonly used to produce steel alloys.
Counsel to Anglo American
Partners Stuart Bedford and Paul McNicholl in London
Lobo & Ibeas
Partners Daniela Bessone and Gabriel Rios Corrêa in Rio de Janeiro
Counsel to China Molybdenum
Osler, Hoskin & Harcourt LLP
Partners Marc Kushner, Paul Seraganian and Andrew Herr and associates Alix Morse, Michael Budabin McQuown, Amma Anaman and Jennifer Lee in New York, and partner Shuli Rodal and associate Adam Gutkin in Toronto
Pinheiro Neto Advogados
Partners Carlos Vilhena and Ricardo Becker and counsel Adriano Drummond Trindade in Brasília