Vale in Sale of MRN Stake to Hydro

Cleary Gottlieb is representing Vale S.A. (Vale) in the negotiation and execution of a binding agreement with Ananke Alumina S.A., a company affiliated with Norsk Hydro ASA (Hydro), pursuant to which Vale has agreed to sell its 40% stake in Mineracão Rio do Norte (MRN), including all associated obligations and rights.

It is contemplated that Vale’s interest in MRN will be acquired by Hydro and then immediately sold to Glencore International AG (Glencore) on a back-to-back basis, following which Vale will no longer have an ownership position in MRN.

The transaction marks the completion of Vale’s major divestment program, which involved selling more than 10 non-core assets across several continents since 2019. Through this program, Vale has been able to simplify and de-risk its business exposure, resulting in the elimination of expenditures of up to US$2.0 billion per year. This reinforces Vale’s strategy of portfolio simplification and enables the company to focus on its core businesses and growth opportunities through a disciplined capital allocation.

The transaction was announced on April 27, 2023 and is expected to close in the second half of 2023, subject to the completion of customary regulatory approvals.