Friday, January 15, 2010

Vale Swallowing Another Fertilizer For $3.8B

VALE chart:

Vale continues to buy into fertilizers. It announced today that it is in talks to buy Fosfertil, from Bunge (BG) for $3.8B. 3.8B is not pocket change. It is quite interesting that the huge iron ore company is buying into fertilizers. One wonders what they know...
Note that we track all latin-american ADRs live.
It is not a done deal, yet.

Bloomberg: "Vale disclosed the negotiations in a regulatory filing today, confirming an earlier statement by Fosfertil. White Plains, New York-based Bunge controls the company through holding company Fertifos, as well as direct holdings, according to Uberaba, Brazil-based Fosfertil’s Web site.

Rio de Janeiro-based Vale, the world’s biggest iron-ore producer and second-largest nickel miner, is seeking to increase investments in fertilizers in Brazil as the South American country aims to reduce dependency on imports of crop nutrients. Fosfertil jumped as much as 13 percent in Sao Paulo after the announcement to its highest since Sept. 2, 2008.

Vale declined 0.4 percent to 46.20 reais in Sao Paulo trading at 9:06 a.m. New York time. Fosfertil rose 7.4 percent to 21.70, valuing the company at 8.93 billion reais ($5 billion)".

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