Cuba’s Nickel Giant Draws Rival US Takeover Bids
Sherritt International's tentative Cuba deal with a Trump-linked investor remains unconfirmed, as a rival bid and blackouts complicate the outlook. The post Cuba’s Nickel Giant Draws Rival US Takeover Bids appeared first on The Rio Times .
Canadian mining giant Sherritt International has signed a preliminary deal with Texas investment firm Gillon Capital, but the sale remains unconfirmed amid Cuba's energy crisis. Gillon Capital, which has ties to former Trump administration official Ray Washburne, could gain control over Sherritt's Cuban mining and energy assets.
Sherritt is currently the largest Canadian partner in Cuba's mining and energy sectors. However, expanded US sanctions in May forced Sherritt to suspend its Moa nickel and cobalt venture. Cuba is rich in cobalt reserves, and the Moa mines, once American-owned, were nationalized during the 1959 revolution. Sherritt later signed a non-binding term sheet with Gillon Capital, but rival Glencore-backed investors also made an offer in June.
The Trump administration widened Cuba sanctions in May, causing Sherritt significant financial strain. Sherritt is now negotiating with lenders and bondholders for a broader financial rescue. The U.S.-Cuba Trade and Economic Council, an advocacy group, sees Gillon's deal as a crucial step toward easing Cuba's economic lock. However, regulatory approval from the US Treasury and Toronto Stock Exchange is still needed, and the exclusive talks between Sherritt and Gillon are set to last about 120 days.
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