Vale Divests 13% Interest In Base Metals Business For $3.4B
Portfolio Pulse from Lekha Gupta
Vale SA (NYSE:VALE) has announced two separate deals to sell a 13% stake in its base metals business for a total of $3.4 billion. The first agreement is with Manara Minerals, a joint venture between Ma'aden and Saudi Arabia's Public Investment Fund. The second agreement is with investment firm Engine No. 1. These strategic collaborations will accelerate Vale Base Metals Limited's expected capital program and boost production. The transaction is expected to close by Q1 FY24.
July 28, 2023 | 5:44 pm
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Vale SA has sold a 13% stake in its base metals business, which will accelerate its capital program and boost production. This could potentially increase the company's revenues and profitability.
The sale of a 13% stake in Vale's base metals business to Manara Minerals and Engine No. 1 will provide the company with a significant cash inflow. This will accelerate its capital program and increase production, which could potentially lead to higher revenues and profitability in the future. As a result, this news is likely to have a positive impact on Vale's stock price in the short term.
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