The transaction, valued at $5.27bn, will secure Norsk Hydro’s supply of raw material for aluminium production.

It will hold, among other assets, 60% in one of the largest bauxite mines in the world, Paragominas.

Hydro has an obligation to take over the remaining 40% stake in Paragominas in two instalments, in 2013 and 2015, with a cash payment of $0.2bn for each.

In May last year, Norsk Hydro agreed to buy the assets from Vale, which will get a 22% stake in Hydro as partial payment, and about $1.08bn in cash and about $0.66bn of net debt within the businesses.