The reason for the delay are mining rights and official approvals in Brazil, which require more time than expected. The transaction includes the transfer of numerous mining rights from Vale to a newly established joint venture for the Paragominas bauxite mine, in which Hydro will hold 60 percent of the shares.
"We are unable to complete this transaction as intended this year. We expect to receive the necessary outstanding rights in time to complete the transaction in the first half of 2011, ”said Hydro Svein CEO Richard Brandtzæg.
"We are working closely with Vale to complete the transaction as soon as possible and hope to hope that the remaining issues will be resolved earlier and that the deal can be closed in the first quarter," said Brandtzæg.
"Vale and Hydro are working closely to complete the transaction as soon as possible and we are confident that we will resolve the remaining issues," said Tito Martins, Executive Vice President and Head of Basic Material Operations at Vale.
The delay should not have a material impact on the value of the transaction for Hydro.