Vale in Strategic Partnership for Energy Transition Metals Business

Cleary Gottlieb is representing Vale S.A. (Vale) in connection with Vale’s entry into a strategic partnership with Manara Minerals, a joint venture between Saudi Arabian Mining Company (Ma’aden) and the Public Investment Fund of the Kingdom of Saudi Arabia (PIF), pursuant to which Manara Minerals will invest in Vale Base Metals Limited (VBM), the holding entity of Vale’s energy transition metals business, at an implied enterprise value of $26 billion.

The binding agreement between Vale and Manara Minerals was signed on July 27, 2023. Cleary is also representing Vale in connection with its concurrent entry into a binding agreement with investment firm Engine No. 1 pursuant to which Engine No. 1 will make an equity investment in VBM under the same economic terms as Manara Minerals. The total consideration to be paid to VBM under both agreements is approximately $3.4 billion, for a 13% equity interest.

The closing is expected to occur by the first quarter of 2024, subject to customary conditions precedent, including the approval of relevant regulatory authorities.

Vale is one of the largest metals and mining companies in the world, based on market capitalization, and one of the world’s largest producers of iron ore and nickel.

Manara Minerals is a new venture between Ma’aden and PIF established to invest in mining assets globally and support the development of global supply chains. The company aims to initially invest in iron ore, copper, nickel, and lithium.

Engine No. 1 is an investment firm focused on the themes of decarbonization and the relocalization of North American supply chains.

For more information, please see the press release here.