AKD has, together with Herbert Smith Freehills Kramer, advised Sumitomo Corporation on the divestment of its interest in the Ambatovy nickel and cobalt project in Madagascar through the sale of all shares in Summit Ambatovy Mineral Resource Investments B.V. to UK-based Ambatovy Mineral Resources Investment Holding Company, a consortium led by Essenwood Partners Limited in partnership with Zungu Investments, with a total value of USD 418 million.

The Ambatovy project is a large-scale mining and processing operation producing refined nickel and cobalt, key materials used in, among others, battery technologies, stainless steel production and various industrial applications. It is considered one of the world’s significant laterite nickel developments and plays a role in global supply chains for energy transition-related materials.

Sumitomo, a global trading and investment company headquartered in Japan, has been a participant in the Ambatovy project through its indirect shareholding via Summit Ambatovy Mineral Resource Investments B.V. since 2005. This transaction involved the transfer of the entire issued share capital of Summit Ambatovy Mineral Resource Investments B.V., resulting in a full exit from the project for Sumitomo.

AKD advised on the Dutch law aspects of the transaction, including corporate structuring, drafting and negotiation of the share purchase documentation and related corporate matters. The team was led by Erwin Rademakers and Jeroen Brom-Pop, and further consisted of Monique Verkuilen, Ariänne van Maanen, Thijs Hekman, Sabine Jansen, Harte Havinga and Noah Klaver.

Press releases relevant to this transaction can be read here and here.