Vale ( NYSE: VALE ) confirmed Wednesday it has hired advisors to assess "long term value-unlocking alternatives ," after Financial Times reported the company was looking to sell a stake in its metals business .
FT reported Vale ( VALE ) is in talks to sell a ~$2.5B minority stake in its metals business, as it seeks to raise its copper and nickel production to meet growing demand for the energy transition.
Trading houses in Japan, sovereign wealth funds in the Middle East and automaking companies are examining the Vale ( VALE ) asset, with a first round of bids due at the beginning of November, according to the report.
Vale ( VALE ) is best known for its iron ore operations, but it also has a significant base metals business and is the biggest nickel miner outside Asia; the company is said to be in talks over selling a 10%-15% stake in the base metals unit, a business likely to be valued at ~$25B.
Vale ( VALE ) +1.5% in early trading, while global mining peers BHP and Rio Tinto both opened lower as prices for copper and other base metals lost a chunk of their recent gains .
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Vale hires advisors as it looks to sell stake in metals business