Brazilian miner Vale has concluded the sale of a 10% stake in its base metals unit to Manara Minerals for $2.5 billion, according to a securities filing.
Last July, Vale and Manara Minerals, a joint venture between Saudi Arabian Mining Company (Ma’aden) and Saudi Arabia’s Public Investment Fund, signed a binding agreement for the deal.
In addition, Vale said that a previous agreement with U.S.-based investment firm Engine No. 1, under which Engine would own a 3% equity stake in Vale Base Metals, has not advanced. “Following further negotiations in recent months, both sides have agreed not to move forward with the previously agreed terms and conditions but remain open to future partnerships,” Vale stated.
The completion of the sale to Manara Minerals is part of Vale’s strategy to unlock value in its base metals business. The company has been divesting non-core assets and focusing on its core iron ore operations.
The $2.5 billion transaction with Manara Minerals represents a significant cash inflow for Vale, which the company can use to strengthen its balance sheet and invest in its core business.