NHYKF - Glencore buys stakes in Brazilian assets from Norsk Hydro for ~$700M

2023-04-27 07:28:44 ET

Glencore ( OTCPK:GLCNF ) ( OTCPK:GLNCY ) said Thursday it agreed to acquire a 30% stake in Brazilian alumina refinery Alunorte and a 5% stake in bauxite producer Mineracao Rio do Norte from Norsk Hydro ( OTCQX:NHYDY ) for ~$700M.

The companies said the deal value is based on a total net enterprise value of $1.11B, which will be adjusted for Alunorte's net debt of ~$335M, plus certain post-closing adjustments based on the refinery's financial performance.

Alunorte is the world's largest alumina refinery outside China, producing as much as 6.3M metric tons/year of alumina.

Following the transactions, Norsk Hydro ( OTCQX:NHYDY ) will hold a 62% stake in Alunorte but will no longer have an ownership position in MRN.

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