Miner Anglo American (AAL.L) has sold the South African arm of steelmaker Scaw Metals for $440 million to an investment consortium in a long-awaited deal, bringing proceeds from its drive to divest non-core assets to $3.7 billion over two years.
The sale of Scaw South Africa, an integrated steelmaker which produces specialized components for mining, rail and other industrial sectors, was the last major element of a push to refocus Anglo on its core mining business.
Tuesday's sale, to a group led by South Africa's government-owned Industrial Development Corporation (IDC) and including a consortium of black economic empowerment (BEE) investors, virtually completes that 2009 divestment plan.
Anglo's last significant outstanding deal is the exit from its Tarmac construction materials business through the joint venture between Tarmac UK and cement maker Lafarge LAFP.PA, agreed in 2011 but currently on ice pending a decision from British regulators which could come as early as next week.
Britain's Competition Commission said in February that the joint venture between Anglo and Lafarge would damage competition in the market for construction materials, but the companies have said the regulator's worries can be "remedied.
Anglo had sold Scaw Metals' international business to Onesteel in December 2010 for $932 million.
Tuesday's sale of Scaw South Africa, to the consortium which includes existing Scaw investors Izingwe Holdings, Shanduka Resources and the Southern Palace group of companies, brings the total proceeds from the Scaw Metals Group sale to $1.4 billion.
Analysts welcomed the deal as a positive, with Liberum placing the total Scaw proceeds as equivalent to 6.6 times 2010 core earnings, the last year of Scaw's full contribution.
Anglo shares were up 0.5 percent at 2,307 pence, in line with the broader UK mining sector .FTNMX1770.
Other non-core assets sold over the past two years include Anglo's zinc portfolio, sold to India-focused miner Vedanta (VED.L), Tarmac's European business and undeveloped Australian coal assets.