Anglo American announced Friday that it has received the final regulatory consent from the South African Minister of Mineral Resources for the US$5.1 billion acquisition of the Oppenheimer family's 40 percent stake in the De Beers Group.
"Now that all the conditions to the transaction have been satisfied, a formal pre-emption offer will be served by CHL Holdings Limited (representing the Oppenheimer family interests) on Anglo American and the Government of the Republic of Botswana (GRB) under the terms of the De Beers Shareholders' Agreement," Anglo American said in a statement.
According to the deal, originally announced in November 2011, Anglo American is to acquire an incremental interest in De Beers, increasing Anglo American's current 45 percent shareholding in the diamond company to up to 85 percent, subject to adjustment as provided for in the agreement.
The government of Botswana, which currently holds a 15 percent stake in De Beers, has a pre-emption right in respect of the De Beers interests to be sold by CHL, and its affiliates, enabling it to participate in the transaction and increase its interest in De Beers, on a pro rata basis, to up to 25 percent.
In the event that the Botswana government exercises its pre-emption rights in full, Anglo American will acquire an incremental 30 percent interest in De Beers, taking its total interest to just 75 percent, thus reducing the consideration payable by Anglo American accordingly, notes the London-based global miner.
In January 2012, the transaction was approved by Anglo American shareholders voting 99.94 percent in favor. The European Commission approved the deal in March 2012.
Anglo American says it expects the transaction to close in the second half of 2012, in line with the previously stated timeline.
To read Anglo American's original November announcement, click here: http://tinyurl.com/7tasahv