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Hydro acquires Vale’s remaining shares in Paragominas

Hydro completed the acquisition of Vale’s remaining shareholding in Mineração Paragominas S.A. (MPSA) on December 15, 2016.

The transaction is the second and final step of the MPSA put/call arrangements agreed in 2011 in connection with Hydro’s acquisition of the majority of Vale’s aluminium assets in Brazil. Hydro now owns 100% of MPSA’s shares.

Hydro’s net payment, after adjustments resulting from the completion of outstanding contractual arrangements with Vale, was USD 113 million. Hydro expects the transaction to have a positive impact for Bauxite & Alumina of approximately USD 45 million on its result in the fourth quarter of 2016, of which USD 30 million will be excluded from underlying earnings. 

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