By Luciana Magalhaes and Paula Laier
The potential sale of Brazilian aluminium producer Companhia Brasileira de Aluminio BMFBOVESPA:CBAV3 is moving forward, although discussions with Emirates Global Aluminium have slowed, according to two people familiar with the matter.
The process remains competitive, one of the sources said. China's Aluminum Corporation of China and a third bidder have been actively pursuing the deal, said one of the people and a third source involved in the negotiations. An announcement could come within days or weeks, one of the sources said, although negotiations could still fail.
On Monday, CBA shares were about 5% up in mid-morning trade in Brazil.
CBA and Grupo Votorantim, which controls CBA, declined to comment. EGA and Chinalco did not immediately respond to requests for comment.
CBA, in which Brazilian conglomerate Votorantim S.A. owns a 69% stake, produces low-carbon aluminium across seven Brazilian states.
Last October Reuters reported that EGA, jointly owned by the Abu Dhabi sovereign wealth fund Mubadala and the Dubai sovereign wealth fund Investment Corporation of Dubai, was in discussions to possibly buy the Brazilian company.
According to LSEG, CBA had a market capitalisation of $1.15 billion on Friday's close, with its shares rising nearly 84% over the last year.