New York-based firm Hugo Neu Corp. has agreed to sell its 19.9 percent share of Australian metals recycler Sims Group Ltd. to Japanese trading company Mitsui & Co. for approximately $500 million.
Upon completion of the deal, expected to close in early May, Mitsui will have the right to nominate two directors, including one independent director, to Sims' board of directors. John Neu will then resign as a director of Sims Group.
Mitsui said in a press release on its website that it expects the acquisition to enhance its recycling business. The company recognizes scrap recycling as an industrial solution to environmental problems and has set the recycling business as one of the key businesses in its medium-term management outlook.