Australia’s largest mining company, Anglo American, has been investing in the American stock market, according to a US Senate report released today.
The US Securities and Exchange Commission has found that the company, which has a $10 billion stake in American company XTO Resources, has made “substantial” purchases of US shares.
The Commission found that Anglo American had made a series of purchases of American stocks during the past year, including in the first half of 2018, when it had a $1.2 billion stake.
It also found that in February 2018, the company made a $400 million acquisition of the California-based private equity firm Colony Capital, which invests in the oil and gas industry.
“There is no question that Anglo Amer is an important investor in the US stock market,” Senator Charles Grassley, a Republican from Iowa, said in a statement.
Senator Grassley said the US Securities & Exchange Commission had found that on average, Anglo Amer has made a purchase of about $100 million in the last year.
“The Commission has determined that this is a substantial investment in the United States,” he said.
“There has been a pattern of significant purchases of stock in the S&P 500 and the Dow Jones Industrial Average.
A spokesman for Anglo American did not respond to a request for comment.
Investors in the Australian mining sector have been paying close attention to the SEC investigation.
In October, Anglo AO announced it was buying a large stake in XTO for $9 billion.
The firm’s US parent, Anglo America, also made a significant investment in American stock during the period, and the company’s shares have now climbed above $1,000 in value.
The SEC also found a pattern in which investors in Anglo American have been buying a significant amount of US stocks during this period.
In February 2018 and in the same period the year before, the firm had a large amount of $400m in purchases of shares in Xto, according the SEC.”
These large purchases of foreign equity during this time period, together with the large volume of purchases by the Anglo American Group during this timeframe, strongly suggest that the investment is a significant one,” the SEC said.
The SEC investigation is the latest in a series on foreign ownership in the stock market in the U.S. The SEC also released a separate report this week that found there was a “significant” relationship between Chinese companies and Chinese investors.
Chinese companies and their foreign investors are the world’s largest stock investors.
The Australian government is also looking into foreign ownership of Australian assets, but has not named a target number for that investigation.
Topics:investment-and-finance,corporate-governance,business-economics-and/or-federal-government,investments,us-elections,american-state-issues,china,united-statesFirst posted March 07, 2019 07:40:20Contact Peter McVerryMore stories from Western Australia