Norilsk Nickel sells distributor for North and South America to TMP Metals Group

MOSCOW. July 6 (Interfax) - Norilsk Nickel USA, the exclusive distributor of Norilsk Nickel for nickel, platinum group metals and cobalt in the Americas, has been acquired by TMP Metals Group, Norilsk Nickel said in a statement.

Payment was made in cash.

"We see this deal as an opportunity to optimize our global distribution business while helping to establish a more sustainable flow of low-carbon nickel and palladium to industrial consumers in the region," Anton Berlin, vice president of sales at Nornickel, said.

As a result of the deal, TMP Metals Group, Inc. will become one of the leading suppliers of metals and metal products in North America, Latin America and South America, the report said.

"This is an exciting time to become an important supplier of critical metals to the new economy. Nickel, platinum and palladium are key ingredients in the production of electric vehicles, solar panels and wind turbines. To decarbonize the planet, the market must produce four times as much as it does now," Raymond F. Staples, TMP Founder and Chairman, said.

Norilsk Nickel did not comment on the cost of the transaction or its current strategy in the US market.

The American market, along with Europe, is a traditional market for Norilsk Nickel products. In 2022, the Americas accounted for 15% of Norilsk Nickel's metal sales structure, and in Q1 of this year that share increased to 17%. The relative stability is explained by the fact that last year, volumes contracted at the end of 2021 were sold through; Norilsk Nickel's clients fulfilled their obligations, as the company is not under sanctions, representatives of the mining and metallurgical complex said.

At the same time, Asia's share increased in 2022 from 27% to 31%, and in Q1, to 45%, which made this region the main direction for shipments. The growth in shipments to Asia comes at the expense of Europe, whose share fell from 53% in 2021 to 47% last year and 24% in Q1 of this year.