Hydro Inks LoI With Vale To Raise MRN Ownership To 45%

(RTTNews) - Norsk Hydro ASA (NHY, NHYDY.PK, NHYDY.PK) Friday reported a Letter of Intent with Brazilian mining company Vale for the possible acquisition of Vale's 40 percent interest in Brazilian bauxite producer Mineração Rio do Norte or MRN.

The deal will strengthen Hydro's global position as a long player in bauxite and alumina. Hydro already has a 5 percent stake in MRN.

The parties will also seek support from other MRN shareholders to the transaction. MRN's current shareholders include Vale with 40 percent stake, Alcoa with 18.2 percent holding, South with 32 with 14.8 percent, Rio Tinto with 12 percent and CBA with 10 percent.

MRN is situated in the westernmost part of the state of Pará, home to Hydro's other Brazilian operations. It is Brazil's, and one of the world's, largest producers of bauxite. Operational since 1979, MRN currently employs around 1,400 employees and a significant number of contractors.