Seeking Alpha

Vale raises $150M by selling stakes in logistics, chemicals companies

  • Vale (VALE +3.1%) has sold its 31.3% stake in Brazilian logistics firm Logistica Intermodal for $98M through an auction on the Sao Paulo exchange, and its 44.25% stake is phosphoric acid producer Fosbrazil to Israel Chemicals for $52M.
  • The asset sales are part of the mining giant's efforts to shed non-core assets, and to focus on its core iron ore, nickel, coal, copper, and fertilizer businesses. Vale has sold $6B worth of non-core assets in 2013.
  • Previous: Vale considers selling coal, fertilizer stakes to strategic partners
Comments (4)
  • 14215342
    , contributor
    Comments (19) | Send Message
     
    Is this a fire sale ?
    27 Dec 2013, 03:16 PM Reply Like
  • 109547382
    , contributor
    Comments (3) | Send Message
     
    I'm sorry but as long as China sputters Vale's going to sputter. I see China sputtering for a few more years.
    27 Dec 2013, 05:03 PM Reply Like
  • sinedo
    , contributor
    Comments (281) | Send Message
     
    China is re-surging, not sputtering, IMO. Shipping rates are rising, meaning resource exports to China are going back to "normal". There are other signs, but never can be sure. Wait and see, or invest early; hope (bet) that you're right. If the U.S. economic indicators are right, the economy may finally be going positive. If so, the World will prosper too, and China will need to increase production. If Obama will leave the U.S. economy alone, it will do fine. Hopefully, his hate-capitalism policy can be seen for the destruction it does to his Party.
    Sorry, but politics drives markets too. Watch what happens to prosperous and free Chile now that they have voted in the Communists, once again. History is Latin America always repeats. Ditto Argentina. Brazil is always tipping back and forth. The Left thinks Cuba and Venezuela are the ideals to emulate. Equal pain and poverty for everyone.
    Funny how China has seen the riches of capitalism. Can they go back to Communism?
    The lessons of free markets has to be re-learned by each generation, it seems.
    Regards,
    27 Dec 2013, 11:14 PM Reply Like
  • gmmpa
    , contributor
    Comments (468) | Send Message
     
    The commodity sector is still sputtering but the technical analysis of Vale shows the it bottomed last July and is cheap. It is recovering nicely. Iron ore demand in China has definitely picked up. Automobile industry in Brazil and worldwide is improving along with the demand for steel. Vale has shed non-core assets and have focused on their core businesses. Copper demand will improve when the construction industry recovers. Demand will improve soon despite the politically ideologies in South America that insist on destroying capital growth by detracting foreign investment.
    28 Dec 2013, 12:04 AM Reply Like
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