Anglo American (NASDAQ: AAUK) is pleased to announce that it has entered into a period of exclusive discussions with the controlling shareholder of MMX Mineracao e Metalicos S.A. ("MMX"), Mr Eike Batista ("Mr Batista"), in relation to the acquisition of Mr Batistaʼs 63.6% shareholding in a new company ("Newco") which will be demerged from MMX and will own MMXʼs current 51% interest in the Minas-Rio iron ore project and 70% interest in the Amapa iron ore project. MMXʼs logistics business, LLX Logistica S.A., will also be demerged from MMX as part of the same reorganisation, but will not be included in the transaction with Anglo American.

Under the proposed transaction, Anglo American will pay approximately US$5.5 billion for 100% of the issued and outstanding shares of Newco, or approximately US$361.12 per Newco share (assuming one Newco share for each current MMX share), as well as royalty payments to MMX beginning in 2025 for the Minas-Rio project and 2023 for the Amapa project.

Anglo American has committed, after completion of this transaction, to extend an offer to the minority shareholders of Newco at the same price per share offered to Mr Batista, the successful completion of which would result in Anglo American owning 100% of the Minas-Rio project, 70% of the Amapa project and 49% of LLX Minas-Rio, the owner of the Port of Acu. Anglo American acquired 49% of the Minas-Rio project as part of its original investment announced in April 2007, which included 49% of LLX Minas-Rio.

Anglo American plc is one of the worldʼs largest mining and natural resource groups.