2023-07-27 19:37:03 ET
Vale ( NYSE: VALE ) said Thursday it agreed to sell 13% of its nickel and copper business in two separate deals totaling $3.4B.
Under the deals, a joint venture formed by Saudi Arabia's Ma'aden and the country's sovereign wealth fund will acquire 10% of Vale's ( VALE ) base metal unit, confirming earlier speculation , and U.S. investment firm Engine No. 1 will buy 3%.
For Saudi Arabia, the deal marks its first big push to deploy its vast oil wealth into the global mining industry; for Vale, the sale proceeds will help finance as much as $30B of investments over the next decade to tap growing demand for nickel and copper in the switch to electric vehicles.
More on Vale:
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- Analysis: Vale: Brazilian Mining Giant Potentially Undervalued And Offering 8% Dividend Yield
- Stock price return: Down 9.5% YTD, up 9.5% in the past 12 months
For further details see:
Vale to sell 10% stake in base metals unit to Saudi JV, another 3% to U.S. firm