Anglo American, Chile's Codelco settle dispute
LONDON Aug 23 (Reuters) - Anglo American and copper mining giant Codelco have ended a bruising 10-month long dispute, with the global miner agreeing to sell its Chilean rival a stake in its coveted south-central Chilean properties at a discount to the market price.
Under the deal, which draws a line under a dispute over assets including Anglo's Los Bronces copper mine, potentially one of the world's largest, Anglo will sell a 24.5 percent stake in its Anglo American Sur assets to a joint venture between Codelco and Japanese partner Mitsui & Co for $1.7 billion in cash.
The Codelco-Mitsui partnership will buy an additional 5 percent shareholding for another $1.1 billion, with shares made up 0.9 percent from Anglo and 4.1 percent from another shareholder in the properties, Japanese trading house Mitsubishi Corp.
As a result of the deal, Anglo will be left with a 50.1 percent shareholding, while Codelco's joint venture will hold 29.5 percent.
The deal has been done at a discount to the original valuation of the option, which suggested a price for the 24.5 percent at around $2.8 billion - below the original $3 billion after copper prices fell.