RE: GLEN12 Jan 2022 19:02
Billybigwig
Glencore has completed the purchase of Cerrejón from BHP and Anglo American, giving it full ownership of the Colombian coal mine. Thanks to a rise in coal prices, the terms of the deal were sweeter than the commodities giant had anticipated. Previously, the three miners each had a one-third interest in Cerrejón. Glencore agreed to buy out BHP and Anglo last June, paying $588 million in total. At the time, Glencore said cash generated by Cerrejón before the deal completed would reduce the effective price to $230 million. But coal mines minted money last year when prices shot up and Cerrejón had cash in the bank. "We basically got it for free," a person familiar with Glencore's thinking said.