South Africa: Vedanta eyes US$7b merger with Anglo American

Volcan Investments, the family trust of Vedanta Resources founder Anil Agarwal, is planning to buy Anglo American Plc’s South African business by merging the two units via a share swap, Livemint reported on Wednesday.

The control of Anglo American South Africa will give Agarwal, who rose from a scrap metal dealer to become a metals billionaire, control of a company that owns the iconic De Beers, the world’s largest diamond producer.

Volcan Investments on Monday offered to purchase the shares in Vedanta Resources that it does not already own and then delist the company from the London Stock Exchange, as part of a plan to simplify the company’s structure.

“So, once Vedanta Resources merges with Anglo American as per the plan being thought about, Volcan will become a promoter shareholder in the merged entity. Volcan will first attempt to secure a board approval for taking over Anglo American SA, whose value is estimated at around US$4 billion, but even if that does not happen, Vedanta Resources will look to increase its stake to over 50% in Anglo American SA, which will increase Volcan’s economic interest in Anglo American,” said one of the two people cited above.

Full Content: Livemint

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