Engine No. 1 LP entered into binding agreement to acquire 3% stake in Energy Transition Metals business of Vale S.A. (BOVESPA:VALE3) for approximately $780 million on July 27, 2023. In a related transaction, along with sale of 3% stake in Energy Transition Metals business Vale also sold additional 10% stake in Energy Transition Metals business to Saudi Arabian Mining Company (Ma'aden) (SASE:1211) and an undisclosed public investment firm for a combined purchase price of $3.4 billion. Under the terms of agreements, the total consideration of $3.4 billion will be paid in cash to VBM at the closing of the transaction, subject to customary adjustments. Post-closing of the transaction, Engine No. 1 will own 3% and Saudi Arabian Mining Company (Ma'aden) and undisclosed PIF will own 10%. As a part of acquisition, the Company will retain control over VBM and this agreement shall be accounted for as an equity transaction with any result being recognized in shareholder?s equity upon closing of the transaction.

The transactions are subject to customary conditions precedent, the approval of relevant regulatory authorities, including the approval of the relevant antitrust and are expected to close in first quarter of 2024. As of April 19, 2024, the transaction is expected to occur in the second quarter of 2024. These transaction will see strategic investments as a major milestone in our path to accelerate accretive growth in our Energy Transition Metals business platform, creating significant long-term value to all of our stakeholders.

Kyle M. Watson, Chris Heasley, Luci Hague, Mark Dundon and Alexander Cox, Sara Pickersgill, Victoria Legg, Hayley L. Hollender, Kamran S. Bajwa of Kirkland & Ellis LLP acted as a legal advisor to Engine No. 1 LP.

Engine No. 1 LP cancelled the acquisition of 3% stake in Energy Transition Metals business of Vale S.A. (BOVESPA:VALE3) on April 30, 2024. As of April 30, 2024, following further negotiations in recent months, both sides have agreed not to move forward with the previously agreed terms and conditions but remain open to future partnerships.