BHP has signed a sale and purchase agreement (SPA) with Glencore to divest its 33.3% interest in Cerrejón, a non-operated energy coal joint venture in Colombia, for US$294 million cash consideration.
The transaction has an effective economic date of 31 December 2020. The purchase price is subject to adjustments at transaction completion, which may include an adjustment for the dividends paid by Cerrejón to BHP during the period from signing to completion.
Alongside BHP and Anglo American, Glencore currently holds a 33.3% interest in the operation. Glencore reportedly intends to acquire both BHP and Anglo American’s holdings.
Subject to the satisfaction of customary competition and regulatory requirements, Glencore would assume full ownership and operating control of Cerrejón. Completion is expected to occur in 1H22.
Read the article online at: https://www.worldcoal.com/coal/28062021/bhp-sells-cerrejon-interest-to-glencore/