Brazil’s Gerdau buys out Sumitomo Corp and JSW in Gerdau Summit
The transaction is expected to close in early 2025.
Vale SA recruited former Anglo American Plc boss Mark Cutifani to lead an independent board that will oversee its new base metals subsidiary, the Brazilian mining giant said on an earnings call Thursday.
Cutifani will join Jerome Guillen, a former Tesla Inc. executive, on Vale’s so-called energy transition board as the world’s No. 2 iron ore supplier moves forward with the separation of its base metals business.
Vale, which makes most of its money from iron mines in Brazil, is looking to bring in fresh capital and expertise to grow its nickel and copper operations in Canada, Brazil and Indonesia at a time when battery-metal demand expands in the move away from fossil fuels.
“We are certain he will be a valuable partner as we bring our tier-one portfolio of assets to the next level, unlocking significant value to our shareholders,” chief executive officer Eduardo Bartolomeo said of Cutifani’s appointment.
The separation plan, which includes the sale of a 10% stake to a strategic investor, will also allow Vale to grow “inorganically” as the industry enters a consolidation phase, Bartolomeo said. The company is always looking at “smart M&A” in iron ore as well, he said.
(By Mariana Durao and James Attwood)
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