Brazilian miner Vale is looking for an investor in its energy subsidiary Alianca Energia, according to a report by local newspaper Valor Economico. The report cites sources close to the matter, stating that China’s CTG, Engie Energia, and Neoenergia are interested in investing in the subsidiary.
Vale had recently signed a contract in late March to buy the remaining 45% stake it did not already own in Alianca Energia from energy firm Cemig for 2.7 billion reais ($540.9 million). This move suggests that Vale is now seeking to bring in a new investor to potentially take a stake in the energy subsidiary.
Alianca Energia is Vale’s energy subsidiary, which the mining giant has been focusing on as part of its efforts to diversify its business beyond core mining operations. The move to find an investor for Alianca Energia comes as Vale looks to optimize its asset portfolio and potentially unlock value from its energy investments.
Vale has not yet responded to a Reuters request for comment on the report. The potential investment from companies like CTG, Engie Energia, and Neoenergia could provide additional capital and expertise to support the growth and development of Alianca Energia.
The report highlights Vale’s ongoing efforts to explore strategic options for its non-core assets and subsidiaries as the company continues to reshape its business portfolio.