OM Group Divests Cobalt Business for $325 Million

OM Group (NYSE:OMG) announced that they have divested their cobalt business to a joint venture between Freeport-McMoRan Copper & Gold Inc., Lundin Mining Corporation and La Generale des Carrieres et des Mines (Gecamines) for $325 million.

As quoted in the press release:

Following the sale, to assist the buyer of the downstream business with the ownership transition, the Company will act as an intermediary of cobalt supply between GTL and the Freeport joint venture under a two-year agreement subject to delivery of 7,000 MT of feed.  Also, OM Group will continue to serve as the U.S. distributor for refined cobalt products for a period of one year.  Both of these transition service agreements are back-to-back arrangements with minimal profit or cash flow impact anticipated for OM Group.

To view the whole press release, click here.