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Vale to sell California Steel stake for US$400M

Brazil-based miner Vale says it’s agreed to sell its 50% stake in California Steel Industries to Nucor for US$400 million cash, adjusted for net debt and working capital at closing.
Vale to sell California Steel stake for US$400M Vale to sell California Steel stake for US$400M Vale to sell California Steel stake for US$400M Vale to sell California Steel stake for US$400M Vale to sell California Steel stake for US$400M

California Steel Industries

Staff reporter

Nucor said it would also acquire 1% from JFE Steel Corporation to take majority ownership of CSI, a flat-rolled steel converter which has the capability to produce more than two million tons of finished steel and steel products annually.

Vale had become a CSI shareholder in 1984 and had shared control with JFE.

The miner said the transaction reinforced its capital discipline, with focus on its core businesses and commitment to a leaner portfolio.

Vale has trimmed its iron ore, copper and nickel production guidance for 2021 but is maintaining its "medium term" goal of achieving iron ore capacity of 400 million tonnes per annum as it recovers from the fall-out over its fatal Brumadinho tailings dam failure in January 2019.

Vale shares (BZ: VALE3) closed up 2.9% in Brazil to BRL77.86, towards the lower end of a one-year range, valuing it about BRL400 billion (US$70 billion).