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Deutsche Bank Says BHP may sell up to US$33 Bln of assets if Potash Bid Succeeds: report

BHP Billiton Ltd may sell as much as US$33 billion of coal and aluminum assets in South Africa, the U.S. and Canada, if a bid for Potash Corp. of Saskatchewan Inc. (POT.TO) succeeds, Bloomberg cites Deutsche Bank as saying.

"The sale of smaller assets would simplify the group''s asset portfolio once more, and allow management to focus their energies on core divisions," Paul Young, an analyst at Deutsche Bank, reportedly wrote yesterday in a research report.

The assets may include aluminum, coal and mineral sands resources in South Africa, leaving only the company's manganese operations in the country, Bloomberg cites the report as saying. BHP may also sell its two U.S. coal mines, its Nickel West unit, the Ekati diamond mines in Canada and Potash Corp.'s nitrogen and phosphate assets, Deutsche Bank reportedly said. That would cut debt to below US$10 billion and improve the group's earnings-before- interest-and-tax margin by as much as 7%, it reportdly said.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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