BHP Could Sell Assets After Potash Deal, Deutsche Bank Says

.BHP Billiton Ltd., the world’s largest mining company, could sell up to $33 billion of non-core assets should its takeover bid for Potash Corp. of Saskatchewan Inc. succeed, Deutsche Bank AG said.

“The sale of smaller assets would simplify the group’s asset portfolio once more, and allow management to focus their energies on core divisions,” analysts led by Paul Young said yesterday in a research report.

BHP could sell its South African coal unit, U.S. coal unit, the Nickel West unit, the Ekati diamond operation, Richard Bay Minerals, South African aluminum smelters and Potash Corp.’s nitrogen and phosphate assets, the report said. This would cut debt to below $10 billion and improve the group’s earnings before interest and tax margin by as much as 7 percent.

BHP has offered $40 billion in cash, or $130 a share, to buy Potash Corp., which has rejected the offer and started talks with third parties.