The Norwegian company Hydro has reached an agreement to buy a majority stake in the aluminium operations of Brazilian miner “Vale”. Hydro is a global supplier of aluminium and aluminium products.
The company employs 19000 employees and has activities on all continents. With this extra take-over they want to become the world’s largest coal mining company.
In the opinion of the business managers is this agreement an important step to become a fully integrated aluminium company.
The Norwegian Hydro is convinced that this buy will also secure them supplies in aluminium from Brazil. In my opinion this take-over is a very good step in the right direction for Hydro because they still have a strong growth potential.
The Norwegian company “Hydro” has to pay 4.9 billion dollars for the take-over. In exchange for the sale Vale has received 1.1 billion dollars in cash and a 22% stake in Norsk Hydro. Vale is a pioneering mining company which transforms the earth’s mineral resources into sustainable development.
In my opinion this take-over is absolutely a good fact because both companies have the same market strategy and future plans. They both want to be the largest mining company in the world.
With also a lot of extra production activities in Brazil Hydro will move into the top class of global aluminium companies. I think we can only stimulate this expansion.
This blog is based on the following article:
http://news.bbc.co.uk/2/hi/business/10095021.stm
De Bruycker Mathias
2FV4
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I agree with you that this take-over can be good for both firms and become one of the big players on their market.
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