Brazil Vale: Prefers Own Fertilizer Assets To Acquisition
July 17 2009 - 5:34PM
Dow Jones News
Brazilian mining mammoth Vale SA (VALE) said Friday that due to
the superior option of organically growing its own fertilizer
assets, the company hadn't made any proposal on acquiring companies
in the sector, Vale said in a statement Friday.
The statement was a reaction to Thursday's Brazilian press
report that Vale was looking at further acquisitions of potassium
assets.
Citing market sources, the Estado newspaper said Vale was
targeting Mosaic (MOS), which is controlled by Cargill and IMC
Global (IGL).
Vale on Thursday declined to comment on the company's alleged
interest in Mosaic.
Mosaic is valued at $25 billion, Estado said, and is the world's
largest phosphates producer and one of the world's largest
potassium miners.
Earlier this year Vale paid $857 million for potassium mining
assets in Argentina and Canada.
Vale CEO Roger Agnelli had previously said Vale was interested
in developing its potassium-mining business to supply Brazilian
agriculture's large and growing appetite for fertilizers.
According to the Estado report, Vale's global mining rival BHP
Billiton (BHP) was also likely to compete for Mosaic.
-John Kolodziejski, Dow Jones Newswires; 55-21-2586-6086;
John.Kolodziejski@dowjones.com