Metals News
Norsk Hydro Says Vale Aluminum Deal Delayed
industry news
10:19AM
Source:SMM

OSLO (Reuters) - Norwegian aluminum producer Norsk Hydro's (NHY.OL) planned $4.9 billion purchase of Brazilian miner Vale's VALES.SA aluminum assets has been delayed until the first half of 2011.

Norsk Hydro said on Tuesday the delay from the fourth quarter of 2010 was caused by mining rights and regulatory approval processes in Brazil and was not expected to have a significant impact on the value of the transaction for Hydro.

Its shares were down 1.7 percent to 39.48 Norwegian crowns at 0940 GMT on an Oslo bourse down 0.5 percent.

"The news does not alter our view of the deal, but it is marginally negative to sentiment because the market is already a little unsure how to value these assets," said Samir Bendriss, an analyst at Pareto Securities.
 

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