BHP Agreement For Divestment Of Cerrejon JV Interest In Colombia

AUSTRALIA - BHP has signed a Sale and Purchase Agreement with Glencore to divest its 33.3 per cent interest in Cerrejon, a non-operated energy coal joint venture in Colombia, for US$294 million cash consideration. The transaction has an effective economic date of 31 December 2020. The purchase price is subject to adjustments at transaction completion which may include an adjustment for the dividends paid by Cerrejon to BHP during the period from signing to completion.

Alongside BHP and Anglo American, Glencore currently holds a 33.3 per cent interest in the operation. Glencore intends to acquire both BHP and Anglo American’s holdings.

Subject to the satisfaction of customary competition and regulatory requirements, Glencore would assume full ownership and operating control of Cerrejon. We expect completion to occur in the first half of the 2022 calendar year.