Brazil's Vale Gives Up On Mosaic Bid - Estado
August 20 2009 - 7:14PM
Dow Jones News
Brazilian mining firm Vale SA (VALE) has dropped plans to make a
bid for Mosaic Co. (MOS), ceding to government pressure, according
to an industry source, the local Estado newswire reported
Thursday.
At a time when Vale is reducing investments at home and sacking
2,000 employees, government officials frowned upon the possible $25
billion bid for the potassium miner and phosphate producer, which
effectively scuppered the plan.
Vale declined to comment on the report.
The government doesn't control Vale, but the government-run
BNDES development bank is part of the controlling group, as is
Previ, the employee pension fund of state-controlled Banco do
Brasil SA (BBAS3.BR), over which it has great influence.
Reports of Vale's interest in Mosaic, which is controlled by
Cargill Inc. and IMC Global Inc. (IGL), were published in July
after Vale Chief Executive Roger Agnelli said the company was
looking to develop its potassium-mining business to provide for
Brazilian agriculture's large and growing appetite for
fertilizers.
Vale is the world's largest iron ore producer, while Mosaic is
the largest phosphates producer and one of the largest
potassium-mining companies.
-By Alastair Stewart; Dow Jones Newswires; 5511 2847-4520;
alastair.stewart@dowjones.com