Anglo American confirmed it is in advanced discussions with Sirius Minerals in relation to a possible offer at a value of 5.5 pence per Sirius share, in cash. The proposal would value the entire issued share capital of Sirius at approximately £386 million ($504 million).

In September 2019, Sirius announced it was undertaking a strategic review to assess the development plan for its polyhalite project in North Yorkshire, England, and an appropriate financing structure to provide relevant funding. Sirius also announced that the strategic review would include a broader process to seek a major strategic partner in the project. In November 2019, Sirius provided an update on the progress of this strategic review, including a revised two-stage development plan.

Anglo American said it identified the project as being of potential interest some time ago, given the quality of the underlying asset in terms of scale, resource life, operating cost profile, and the nature and quality of its product. The company also said it has the potential to fit well with Anglo American’s established strategy of focusing on world-class assets, particularly in the context of Anglo American’s portfolio trajectory toward later cycle products that support a fast-growing global population and a cleaner, greener, more sustainable world.

Share