Hydro-Vale aluminium transaction expected to close in first half 2011
by Hydro Aluminium AS 14 Dec 10:21
(December 14, 2010)
Norsk Hydro ASA expects to close the planned acquisition of Vale SA’s aluminium assets in the first half 2011, representing a delay from the original plan to close the transaction in the fourth quarter 2010.
The reason for the delay relates to mining rights and regulatory approval processes in Brazil, which are taking longer than anticipated. The transaction involves the transfer of a large number of mining rights from Vale to the newly established Paragominas joint-venture company, in which Hydro will own 60 percent. Most of the transfers have been approved.
“We will not be able to close the transaction this year, as anticipated. We expect to get the necessary remaining approvals in time to finalize the transaction in the first half 2011,” said Hydro CEO Svein Richard Brandtzæg.
“We are working closely with Vale to complete the transaction as soon as possible, and hope to finalize the outstanding issues earlier and close in the first quarter, if possible,” Brandtzæg said.
“Vale and Hydro are working closely together to finalize the transaction as soon as possible, and we are confident that we will resolve all outstanding issues,” said Tito Martins, Executive Officer and Head of Basic Material Operations in Vale.
The delay is not expected to have significant impact on the value of the transaction for Hydro.