Vale board OK’s sale of fertilizer unit — report
Cecilia Jamasmie
October 27, 2016
Mining.com
The board of directors at Brazilian mining giant Vale (NYSE:VALE), the world’s largest iron ore producer, has approved the sale of the firm’s fertilizer business, amid a global oversupply of potash that has caused prices to tumble in the past year, leading to layoffs and mine closures across the sector.
With the deal, Vale is expected to fetch about $ 3.5 billion.
According to local newspaper Valor Economico (in Portuguese) most of the division’s assets will be acquired by US-based Mosaic Co. (NYSE:MOS), the world’s largest producer of phosphate fertilizer, with whom Vale had been in talks for months.
The company’s plants in Cubato, So Paulo, are said to begoing to Norway’s Yara International.
With the deal, Vale — the biggest producer of phosphate in Brazil, which in turn is the planet’s fifth-biggest user of fertilizer — is expected to fetch about $ 3.5 billion.
https://prosperitysaskatchewan.ca/2016/10/27/vale-board-oks-sale-of-fertilizer-unit-report/