(Boursier.com) — Against the tide, Eramet gained 3.4% to 72.6 euros this weekend. The market appreciates the sale of the Norwegian subsidiary Eramet Titanium and Iron (ETI) to the British group Ineos for $245 million. “The transaction thus completed is final and is no longer subject to any conditions, all regulatory authorizations having been obtained by INEOS Enterprises prior to Eramet’s acceptance of the offer received.” ETI is a Norwegian plant processing ilmenite into titanium dioxide slag for the pigment industry. It also produces high purity cast iron for the European foundry market.
The speed of the sale and the very good price are very good news after the group had scolded investors with the very tedious sale of Erasteel and especially of Aubert & Duval during the first half of the year, estimates Oddo BHF. The sale has an impact of 4 euros on its valuation, corresponding to the creation of value on ETI which it until now estimated at 150 ME in its sum of the parts. Despite a price target raised to 91 euros, the broker remains ‘neutral’ on the issue. While the prices of iron ore and coal are currently benefiting from positive signals from China, manganese remains depressed due in particular to an abundant supply (partly fueled by Eramet which significantly accelerated the pace of production after the incidents of S1). The evolution of nickel prices is also contrasted with, on the one hand, a strong rebound in ore prices in China and ferronickel, very favorable to SLN, but on the other hand, a decline in LME nickel prices (on which the ore is indexed). Indonesian) unfavorable to Weda Bay, details the analyst.
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