Commenting on what would probably happen after the successful acquisition of Potash Corp. (NYSE:POT) by BHP Billiton (NYSE:BHP), Deutsche Bank (NYSE:DB) said its very likely they'll sell off some of their non-core assets, which could bring up to $33 billion into company coffers. This assumes they are able to get the deal done.
Deutsche said in a research report, “The sale of smaller assets would simplify the group’s asset portfolio once more, and allow management to focus their energies on core divisions.”
Some assets the report listed as highly probable to be sold would be the nitrogen and phosphate units of Potash, U.S. and South African coal units, South African aluminum smelters, Nickel West, Ekati diamond operation and Richard Bay Minerals.
That would slash the debt load of BHP to under $10 billion while improving EBITDA by as much as 7 percent.
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