Anglo to Pay $2.8 Billion for Minorco

South Africa’s Anglo American Corp. said it would pay about $2.8 billion to acquire the 54% of Luxembourg’s Minorco it doesn’t already own, to create one of the world’s biggest mining and natural resources companies, with a stock market value of $10 billion. The new company would move its headquarters to London after 81 years in South Africa. Anglo also said it will take control of gold, platinum and zinc mining projects it jointly holds with De Beers Consolidated Mines Ltd., the world’s biggest diamond seller and Anglo’s largest shareholder. In return for De Beers’ stakes, Anglo will give De Beers at least 40% of the new company. The acquisitions would give Anglo, whose operations are focused in southern Africa, full ownership of mines in Europe and the Americas that were spun off to Minorco five years ago. Minorco has operated as the overseas wing of Anglo since the 1993 split, which prompted suspicions that Anglo was attempting to shelter its overseas assets from possible nationalization by South Africa’s black-led government, which took over in 1994. The company always has denied having such an intention.