2023-07-25 10:21:51 ET
Vale ( NYSE: VALE ) is close to completing a deal to sell a ~10% stake in its $25B base metals unit to a joint venture between Saudi Arabia's sovereign wealth fund and a Saudi mining company, The Wall Street Journal reported Tuesday.
Saudi Arabia's sovereign wealth vehicle, the Public Investment Fund, and state-owned mining company Ma'aden are nearing an agreement to pay $2.5B for the stake, which could be announced as soon as this week, according to the report.
Vale's ( VALE ) base metals business mines and processes nickel and other metals needed to build electric vehicle batteries.
Bloomberg reported a month ago that PIF had emerged as the leading bidder for the stake.
Vale ( VALE ) +3.8% , rising along with other base metals miners on renewed hopes for stimulus measures from China's government.
More on Vale:
- Financial and valuation comparison to sector peers
- Analysis: Vale: Brazilian Mining Giant Potentially Undervalued And Offering 8%+ Dividend Yield
- Stock price return: Down 10% YTD, up 12% in the past 12 months
For further details see:
Vale nears deal to sell 10% of base metals business to Saudi Arabia - WSJ