SAO PAULO – Brazilian conglomerate Cosan stated on Friday it had acquired a 4.9% stake in Vale and intends to extend its guess in the mining firm.
The deal marks a serious breakthrough in Cosan’s push into the iron-ore trade, bolstered by one of many world’s largest miners.
Cosan stated its stake in Vale may attain 6.5%, pending approval from Brazil’s antitrust watchdog.
Cosan, which is managed by Brazilian billionaire Rubens Ometto and operates in segments starting from sugarcane to logistics, pays round 21-billion reais ($4.04-billion) for the deal, funded by long-term credit score traces.
In a securities submitting, Cosan stated it made the acquisition “by means of a subsidiary and a mixture of direct investments, fairness and by-product operations.”
Cosan made its debut within the mining sector final 12 months, when it shaped a three way partnership with Aura Minerals’ controlling shareholder, acquiring exploration rights for mining property in three mineral initiatives in Brazil’s northern state of Para, close to Parauapebas, the place Vale additionally operates.
On the time, Cosan additionally acquired the Sao Luis port firm in northern Brazil for 720-million reais from China Communications Building Firm, with goals to make use of it to move iron ore.
Shares in Cosan ended down 8.7% on Friday, whereas Vale’s shares fell 0.05%, after having risen greater than 5% earlier.