Vale, Apollo reported eyeing Anglo unit

Rio de Janeiro—Just over a week after Vale SA was said to be looking to offload a stake in its fertilizer unit (GM April 8, p. 14), the Brazilian mining giant is reported to have joined forces with U.S. private equity firm Apollo Global Management to bid for Anglo American plc’s Brazilian phosphates business. Industry sources believe Vale could benefit from synergies due to of the Anglo phosphates assets being in proximity to some of its own assets. The Anglo phosphates operation includes a phosphate mine at Ouvidor in Goiás state and two downstream phosphate complexes at Catalão, also in Goiás state, and at Cubatão in São Paulo state (GM Oct. 26, 2015). Vale had not responded to Green Markets’ enquiries by press time. Both The Mosaic Co. – according to media reports, also believed to be eyeing the business – and Apollo declined to comment. Anglo put up for sale its niobium and phosphates business in December as part of an accelerated and more radical restructuring to redefine the focus of the group’s asset portfolio and cut debt (GM Dec. 14, 2015). In mid-February, Anglo said it already had received expressions of interest from 16 companies for the unit and was expecting to draw up a shortlist by the end of the month. Media reports say binding bids are expected in a few weeks, but it is unclear how many companies are expected to launch a bid. A spokesperson for Anglo said the sale is advancing according to plan, but he could not comment on the details of the sale process. In mid-February, Anglo CEO Mark Cutifani said a sale of the Brazil-based unit might happen within two-to-three months (GM Feb. 19, p. 13). The company earlier indicated it is looking to sell the niobium and phosphates business in a single transaction. South32 Ltd., the aluminium, coal, and magnesium producer spun out of BHP Billiton Ltd., at least one Chinese state company, and other global private equity firms, including the mining-focused X2 Resources, were also earlier reported to be interested in Anglo’s niobium and phosphate business (GM Jan. 15, p. 13). Israel Chemicals Ltd. also is said to be a possible contender.