Mining giant Anglo American moved a step further towards its restructuring by announcing on Tuesday that it would sell parts of its European Tarmac building materials unit for $400 million to French construction giant Vinci Group.
London-based Anglo American will sell Tarmac’s construction aggregates businesses in France, Germany, Poland and the Czech Republic to Vinci’s Eurovia subsidiary.
However the transaction is subject to regulatory approval.
Anglo American’s CEO Cynthia Carroll has been under pressure to divest its non-core businesses to trim down costs following a “merger of equals” approach by Xstrata previous year.
It may be noted here that two of Anglo’s subsidiaries Anglo Platinum and De Beers are raising $1.6 billion $1 billion respectively via rights issue to strengthen their balance sheets.