11/17/2017

Vale announces the sale of its nitrogen and phosphate assets in Cubatão to Yara

Rio de Janeiro, November 17, 2017 – 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.

 

For further information, please contact:
+55-21-3485-3900

André Figueiredo: andre.figueiredo@vale.com
André Werner: andre.werner@vale.com
Carla Albano Miller: carla.albano@vale.com
Fernando Mascarenhas: fernando.mascarenhas@vale.com
Samir Bassil: samir.bassil@vale.com
Bruno Siqueira: bruno.siqueira@vale.com
Clarissa Couri: clarissa.couri@vale.com
Renata Capanema: renata.capanema@vale.com

This press release may include statements that present Vale’s expectations about future events or results. All statements, when based upon expectations about the future, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM), and the French Autorité des Marchés Financiers (AMF), and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.

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Vale announces the sale of its nitrogen and phosphate assets in Cubatão to Yara