Evraz, one of Russia's largest steel and mining companies, has an option to increase its stake in South Africa-based Highveld after regulatory approval is received from the antimonopoly authorities in South Africa and other countries.
"Subject to Evraz receiving such regulatory approvals, Evraz will be entitled to purchase Anglo American's remaining 29.2% shareholding as well as the 24.9% holding of Credit Suisse through separate option agreements. Should Evraz increase its interest beyond 35%, it will be obliged to make an offer to all shareholders of Highveld," the statement said.
After option contracts are implemented, Anglo American will have received $678 million for the 79% stake in Highveld.
"Evraz has great confidence in the South African steel industry and is excited by its new investment in Highveld and by the outlook for steel and vanadium markets. The South African steel market is experiencing strong demand growth driven by an upswing in new mining, infrastructure and industrial projects," Evraz CEO Alexander Frolov said.
He added that he had high expectations for Highveld's internal growth plans, in both its vanadium and steel businesses.
