South32’s Illawarra Metallurgical Coal sale receives approval

The transaction is now expected to be completed in Q1 FY25, subject to the receipt of the remaining foreign merger clearances.

The consideration for the transaction is up to US$1.650 billion comprising:

• Upfront cash consideration of US$1.05 billion, payable at completion.
• Deferred cash consideration of US$250 million, payable in 2030.
• Contingent price-linked cash consideration of up to US$350 million.

The total consideration represents a multiple of approximately 7.2x average annual free cash flow for Illawarra Metallurgical Coal.