Icahn Enterprises to Sell Ferrous Resources to Vale Unit -- Update

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12/06/2018 | 12:38 am
Carl Icahn

By Josh Beckerman

Carl Icahn's Icahn Enterprises LP has agreed to sell Brazilian iron ore company Ferrous Resources Ltd. to a Vale SA unit in a deal with an enterprise value of about $550 million.

Icahn Enterprises, which owns 77% of Ferrous, purchased an interest in 2012 and then acquired its controlling stake in 2015.

"Even under challenging circumstances created by volatile commodity markets over the past several years, we deployed our activist modus operandi and guided the company through turbulent times," Mr. Icahn said in a statement.

Ferrous Resources constitutes the mining segment of Icahn Enterprises. In its third-quarter earnings presentation, Icahn Enterprises said the segment swung to a profit as investment in processing plants led to higher-quality products that sold at a significant premium.

Over the years, Ferrous Resources shareholders have included Ferrexpo PLC (FEEXF) and Glencore PLC (GLNCY).

The transaction is expected to close in 2019, subject to receiving antitrust approval in Brazil.

Write to Josh Beckerman at josh.beckerman@wsj.com

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