* Offer likely to be confirmed in coming days - sources
* Anglo and Sirius in talks for 9 months - sources
* Anglo unlikely to increase bid value - sources
By Barbara Lewis and Clara Denina
LONDON, Jan 14 (Reuters) - Anglo American Plc is
likely to confirm a deal to buy fertiliser company Sirius
Minerals Plc for more than $500 million excluding debt,
ahead of an early February deadline to finalise its bid, three
sources close to the matter said.
Anglo said on Jan. 8 it was in advanced talks over a 5.5
pence ($0.7138) cash offer for the venture that is Britain's
biggest mining project.
Sirius' share price rose more than a third when Anglo
announced its indicative offer and it closed at 5.4 pence on
Tuesday.
The company has until Feb. 5 to make a firm offer or walk
away, but a bid is likely in the coming days, the sources said.
Anglo declined to comment and Sirius was not immediately
available to comment.
A deal would throw a lifeline to Sirius and is politically
resonant as it would save hundreds of jobs in northern England,
where the lack of opportunities was an issue in the election
that returned Prime Minister Boris Johnson's government to
power.
It would also diversify Anglo American's portfolio and mark
its return to fertiliser. It sold its remaining fertiliser
project in Brazil in 2016 when it was recovering from a
commodity market crash.
Sources said the two companies have been in talks for the
last nine months. They said Anglo is unlikely to increase its
offer.
"There is significant value that Anglo can capture with the
discount that Sirius trades at, because they can bring financing
and knowledge on how to push the project forward," said RBC
analyst Tyler Broda.
Anglo will have to invest more than $3 billion over five
years. This is modest compared with the $8.8 billion cost of its
Minas Rio iron ore project in Brazil, which it bought at the top
of the cycle.
Sirius has struggled to get bank financing to complete its
project since fundraising with retail investors in 2017. It
embarked on a review after scrapping a plan to raise $500
million in a bond sale.
The share price fell more than 80% in 2019.
The sources also said Sirius was unlikely to get a better
offer.
Anglo last week said Sirius provided a rare chance to buy
near the bottom of the market.
The project could also help Anglo move away from more
polluting assets, notably coal, as investors demand miners
become more climate aware.
(Reporting by Barbara Lewis and Clara Denina; Editing by Lisa
Shumaker)
