Vale Completes Sale of MRN Stake to Hydro

Cleary Gottlieb represented Vale S.A. (Vale) in the closing of the sale of its 40% stake in Mineracão Rio do Norte (MRN), including all associated obligations and rights, to Ananke Alumina S.A., a company affiliated with Norsk Hydro ASA (Hydro).

Vale’s interest in MRN will be acquired by Hydro and then immediately sold to Glencore International AG (Glencore) on a back-to-back basis, following which Vale will no longer have an ownership position in MRN.

The transaction marks the completion of Vale’s major divestment program, which involved selling more than 10 non-core assets across several continents since 2019. Through this program, Vale has been able to simplify and de-risk its business exposure, resulting in the elimination of expenditures of up to $2 billion per year. This reinforces Vale’s strategy of portfolio simplification and enables the company to focus on its core businesses and growth opportunities through a disciplined capital allocation.

The transaction was announced on April 27, 2023, and closed on November 30, 2023.