Mitsubishi Corporation’s $600 Million Acquisition of 21,9% stake in Anglo American Quellaveco SA.


Herbert Smith Freehills, Miranda & Amado, Shearman & Sterling and Rubio Leguía Normand advised on the deal

Anglo American has entered into a Heads of Agreement with Mitsubishi Corporation in relation to Mitsubishi’s proposed acquisition of a 21.9% equity interest in Anglo American Quellaveco SA (AAQSA), which owns the Quellaveco copper project in Peru, for a total consideration of $600 million. Mitsubishi already holds an 18.1% interest in AAQSA and, following closing of the Proposed Transaction, Mitsubishi’s interest will increase to 40%, while Anglo American will retain 60%.

The total consideration implies a valuation for 100% of Quellaveco of $2.74 billion. The consideration will be settled upon closing by way of a primary share subscription in AAQSA by MCQ Copper Ltd, a wholly owned subsidiary of Mitsubishi, which will pre-fund a portion of Anglo American’s share of the required capital expenditure for the development of Quellaveco.

Mark Cutifani, Chief Executive of Anglo American, said: “The successful syndication of a 21.9% interest in Quellaveco confirms the world-class quality of our copper asset in Peru and aligns with our disciplined approach to how we allocate capital. We are pleased to be able to extend our longstanding partnership with Mitsubishi and look forward to its ongoing contribution and strong support for the development of Quellaveco.”

Closing of the Proposed Transaction is expected in Q3 2018 and is subject to a number of conditions, including required regulatory approvals, approval by Mitsubishi’s Board, and approval to develop the Quellaveco project by Anglo American’s Board.

Herbert Smith Freehills advised Mitsubishi Corporation and MCQ Copper Ltd. with Andrew Blacoe and Rebecca Major.

In Lima, Miranda & Amado advised Mitsubishi Corporation and MCQ Copper Ltd. with Guillermo Bracamonte Hinostroza, Alberto Delgado Venegas, Roberto MacLean Martins, David Baracco, Alberto Ventura, Sandra Lock and Gabriel Cárdenas.

Shearman & Sterling advised Anglo American PLC with George Casey, Rory O’Halloran and Cody Wright.

Rubio Leguía Normand advised Anglo American PLC with Carlos Arata, Luis Orrego and Sheerley Cárdenas.

Involved fees earner: Carlos Arata – Rubio Leguía Normand; Luis Orrego – Rubio Leguía Normand; Sheerley Cárdenas – Rubio Leguía Normand; Guillermo Bracamonte – Miranda & Amado Abogados; Alberto Delgado – Miranda & Amado Abogados; Roberto MacLean – Miranda & Amado Abogados; David Baracco Vargas – Miranda & Amado Abogados; Alberto Ventura – Miranda & Amado Abogados; Gabriel Cárdenas Ríos – Miranda & Amado Abogados; Sandra Lock Benavides – Miranda & Amado Abogados; Andrew Blacoe – Herbert Smith Freehills; Rebecca Major – Herbert Smith Freehills; George Casey – Shearman & Sterling; Rory O’Halloran – Shearman & Sterling; Cody Wright – Shearman & Sterling;

Law Firms: Rubio Leguía Normand; Miranda & Amado Abogados; Herbert Smith Freehills; Shearman & Sterling;

Clients: Anglo American plc; Mitsubishi Corporation;

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Author: Michael Patrini