Glencore and Hydro receive approval for Alunorte and Mineracão Rio do Norte (MRN) acquisition transactions

According to an update on Monday, November 20, Hydro and Glencore’s partnership over Alunorte and Mineracão Rio do Norte (MRN) acquisition has received unconditional approval from relevant competition authorities, including Brazil, China, Germany, and Austria. There remain no regulatory conditions pending to complete the transaction for the acquisition.

As per the recent report, all the conditions have been approved, allowing Glencore to acquire a 30 per cent equity stake in Hydro’s Alunorte alumina refinery and Hydro’s 5 per cent ownership in the most prominent Brazilian bauxite producer Mineracão Rio do Norte (MRN).

In addition, Glencore will acquire a 40 per cent stake in MRN, which is currently owned by Vale. As per the terms of the agreement, Hydro will first need to purchase the 40 per cent share from Vale and then sell to Glencore immediately on the condition that the former will no longer have an ownership position in MRN. 

Following this, the bauxite agreement between Hydro and Vale will not remain valid; instead, Glencore will start supplying 30 per cent of Alunorte’s bauxite requirement from MRN. 

On completion of the transaction:

• Glencore will become Hydro’s partner in owning Alunorte joint venture
• Glencore will become a part of the MRN joint venture, along with South32, Rio Tinto and Companhia Brasileira de Aluminio
• Glencore will not be an operator of either Alunorte or Mineracão Rio do Norte
• Glencore will supply most of the bauxite purchase from MRN to Alunorte refinery

As per the report on November 20, the transactions between Hydro and Glencore will likely conclude by November 30 or December 1, 2023.