Glencore Buys Stakes in Brazilian Aluminum Companies for $775 Million

By Joe Hoppe

Glencore PLC said Thursday that it has agreed to acquire a 30% stake in Alunorte SA and a 45% equity stake in Mineracao Rio do Norte SA from Norsk Hydro ASA for a total of $775 million.

The FTSE 100-listed commodity mining and trading company said the binding agreement to acquire the noncontrolling stakes is based upon a proportionate look through enterprise value and a net debt of $335 million as of March 31.

Based on Alunorte's performance and certain post-closing adjustments, the total payment on completion including earnouts is expected to be around $700 million. Completion is expected in the second half of the year.

The acquisition is conditional on customary regulatory approvals.

Glencore won't be the operator of either asset but will have offtake rights for the life of mine from both Alunorte and MRN.

"The acquisition of the equity stakes in Alunorte and MRN provide Glencore with exposure to lower-quartile carbon alumina and bauxite, enhancing our capability to supply [aluminum] for the ongoing energy transition to our customers," said Robin Scheiner, Glencore's head of alumina and aluminum.

Alunorte is the world's largest alumina refinery outside China, located in Bacarena, Brazil, while MRN is a bauxite mine in Trombetas, Brazil.

Write to Joe Hoppe at [e-mail]

(END) Dow Jones Newswires

April 27, 2023 02:53 ET (06:53 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.