Vale S.A., through its subsidiary Vale International SA, has signed an agreement to sell 50% of its distribution center in the Sultanate of Oman for $600 million to Apollo Global Management (Apollo), a leading provider of alternative asset management and pension funds.
The transaction is expected to be completed by the end of 2024, subject to regulatory approvals. The transaction aims to increase Vale’s revenues and generate income from its various assets around the world.
Vale’s distribution center in the Sultanate of Oman operates a marine terminal in the Sohar Industrial Port, which includes a large deep-water jetty and an integrated blending and distribution center with a capacity of 40 million tons per year.
Under the agreement, Vale will continue to manage the operations of Vale’s distribution center in the Sultanate of Oman under a joint management structure without any impact on the organizational structure or employees.
Nasser bin Sulaiman Al Azri, CEO of Vale in the Sultanate of Oman, said: This deal is an important step towards achieving the company’s ambitious plans for long-term growth and expansion in the Sultanate of Oman, stressing that the company is committed to supporting the national economic diversification strategy and contributing to the social growth in the country, adding that improving capital allocation through this asset model will consolidate the company’s strategic position, enhance its competitiveness and increase its flexibility in the market. Vale will retain 100 percent of Vale’s shares in the Iron Ore Pelletization Company, as the project plays an important role in producing and exporting high-quality iron ore pellets that are used in steel production and in other industries such as construction and manufacturing.