Vale makes takeover offer for Metorex

[] — Johannesburg – Brazil’s Vale, the world’s largest producer of iron ore, has made an offer to acquire South African miner METOREX LIMITED for R7.5bn, the two companies said on Friday.

“Under the terms of the offer, if implemented, the Metorex shareholders will receive a cash consideration of R7.35 per share,” the companies said in a joint statement.

They said this was a 20% premium on the closing price of Metorex shares on March 25, the last business day before a cautionary announcement related to the matter was made.

The takeover is another in a series of high-profile moves by firms in emerging market giant Brazil into resource-rich Africa.

Metorex, which will be delisted if the deal goes through, recently raised its copper and cobalt reserves estimates.