Phosphoric Acid, Phosphates & Fertilizers Experts

Vale announces the sale of its fertilizers in Cubatão to Yara

Vale S.A. (Vale) informs that it entered into a quota purchase agreement with Yara International ASA, a company listed on the Oslo Stock Exchange, to sell its fully owned subsidiary Vale Cubatão Fertilizantes Ltda., which currently owns and operates the nitrogen and phosphate assets located in Cubatão, Brazil.

The purchase price is US$ 255 million to be paid in cash upon the closing of the transaction contemplated by the purchase agreement, which is expected to occur in the second half of 2018. Consummation of the transaction is subject to the satisfaction of various conditions precedent, including the approval of the Brazilian anti-trust authority (CADE) and other authorities and a third party’s determination not to exercise, or to waive, by the end 2017, its right of first refusal on the same terms and conditions as proposed by Yara.

This is another step in the path to decrease Vale’s leverage, as proceeds received will reduce indebtedness, following the strategy of divesting non-core assets and generate shareholder value through strengthening the balance sheet.