SAO PAULO – Brazilian miner Vale, the world's top nickel producer, is acquiring the control of Ferrous Resources, its controlling shareholder Icahn Enterprises said in a securities filing.
Ferrous, which explores iron-ore, will merge into a company controlled by Vale, the filing said, and will be valued at $550-million, including debt. The transaction is expected to close next year.
Ferrous Resources has five mineral assets in the state of Minas Gerais' iron quadrangle and one operation in Bahia state.
Vale CEO Fabio Schvartsman had said during its last earnings call that the miner was looking for small high-return acquisitions with synergies with the miner's current assets.
In a meeting with investors on Tuesday, Schvartsman announced that Vale had decided to keep full ownership of its New Caledonia nickel mine and invest $500-million in it after previously vowing to find a partner for the venture.