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The transaction between Hydro and Vale should be completed in the first half of 2011

Norsk Hydro ASA expects to be able to complete the planned acquisition of Vale SA's aluminum assets during the first half of 2011 and not in the fourth quarter of 2010, as previously planned.

The delay is due to the process of transferring mining licenses and approvals by the Brazilian authorities, which are taking longer than expected. Specifically, the agreement depends on the transfer of bauxite mining licenses from Vale to the newly created joint venture company Paragominas, which, according to the agreement, will be 60% owned by Hydro. However, most transfers have already been approved.

”It was not possible to close the deal this year, as expected. However, we hope to be able to transfer the necessary remaining licenses in time, to put the agreement into practice in the first half of 2011 ”, says President Svein Richard Brandtzæg.

“We are working in close cooperation with Vale to finalize the transaction as soon as possible and we hope to be able to complete the pending matters ahead of schedule, finalizing the transaction, if possible, in the first quarter,” says Brandtzæg.

“Vale and Hydro work together side by side to finalize the transaction as quickly as possible and we have faith that we will resolve all outstanding issues,” says Tito Martins, president and head of basic materials operations at Vale. < / p>

The delay does not appear to have a major impact on the importance of the transaction for Hydro.

This text is machine translated. To view the original Portuguese text, click on PT on the top right of this window

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