Umicore SA (ENXTBR:UMI) entered into a definitive agreement to acquire Cobalt refining and cathode precursor activities from Freeport Cobalt Oy for $190 million on May 23, 2019. The total consideration is $150 million, plus the value of the working capital to be taken over at closing, which at the end of March 2019 was approximately $40 million. Freeport-McMoRan Inc., majority shareholder of Freeport Cobalt Oy, will separate its cobalt business prior to completing the transaction. Umicore is not acquiring the cobalt fine powders, chemicals, catalysts, ceramics & pigments activities located on the same site. Freeport-McMoRan Inc., and its partners will retain Freeport Cobalt’s remaining cobalt business with operations in Kokkola, Finland. These activities will continue to be run by Freeport Cobalt. Lundin Mining Corporation, a shareholder in Freeport Cobalt Oy will receive 30% of the proceeds from the disposal. The acquisition will be funded from Umicore’s existing credit facilities. Freeport-McMoRan Inc., and its partners will retain sales offices in the U.S., Europe and Asia. The transaction, which is subject to customary closing conditions, including separation of Free Cobalt from Freeport-McMoRan Inc., and receipt of regulatory approvals, is expected to be finalized by the end of 2019. It is anticipated that the acquisition will be earnings accretive from 2020 and value accretive from 2021, after completion of the integration process and a significant reduction of the net working capital resulting from supply chain synergies. Adam Givertz and Ian M. Hazlett of Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as the legal advisors to Freeport-McMoRan alongside Lundin Mining Corporation. Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to Umicore SA.