SAO PAULO: Brazilian miner Vale said on Thursday it reached two separate agreements to sell a 13% stake in its base metals business for $3.4 billion, aiming to boost its copper and nickel output.
The sale is part of Vale’s strategy to unlock more value from its nickel and copper assets, given expectations for soaring demand for the metals from the electric vehicle market.
A joint venture formed by Saudi Arabian Mining Co (Ma’aden) and the country’s Public Investment Fund (PIF) will acquire 10% of Vale’s base metal unit, while U.S. investment firm Engine No. 1 will acquire 3%.
The cash deal expected to close by the first quarter of 2024 values the company’s base metals unit at an enterprise value of $26 billion, it said. Vale’s market capitalization in the Brazilian stock exchange was $67.4 billion, based on Thursday’s closing price.
“With our high-quality portfolio, we are uniquely positioned to meet the growing demand for green metals essential for the global energy transition,” Vale’s CEO Eduardo Bartolomeo said in a statement.
Comments
Comments are closed.