Vale, Dongkuk, and Posco to Sell Companhia Siderúrgica do Pecém

July 27, 2022

Cleary Gottlieb is representing Vale S.A. (Vale), Dongkuk Steel Mill Co. Ltd (Dongkuk), and Posco Holding Inc. (Posco) in the sale of Companhia Siderúrgica do Pecém (CSP) to ArcelorMittal Brasil S.A. (ArcelorMittal).

The stock purchase agreement was signed on July 27, 2022. The enterprise value of the transaction is approximately $2.2 billion, and the purchase price will be used to prepay certain outstanding debt of CSP.

The completion of the transaction is expected by late 2022, subject to the satisfaction of customary conditions and regulatory approvals.

Located in Ceará, Brazil, and founded in 2008, CSP is a joint venture among Vale (50%), Dongkuk (30%), and Posco (20%). It operates a 3 million tonne capacity blast furnace and has access to the Port of Pecém, a large scale, deep water port located 10 kilometers from the plant.