• Dec. 19, 2016, 11:28 AM
    • Mosaic (MOS -4.6%) and Vale (VALE -3.5%) are both trading lower after the ag giant buys most of the fertilizer chemicals business of the Brazilian miner in a cash and stock deal valued at $2.5B.
    • MOS will pay for the deal with $1.25B in cash, which it plans to raise through debt, and 42.3M newly issued common shares, or a ~11% stake in the company.
    • Rumors had swirled for months that MOS could buy Vale's fertilizer business, with some reports speculating a $3B price tag.
    • Analysts at Banco BTG Pactual estimate MOS is paying 8.6x the fertilizer division's EBITDA, which they say is "an attractive multiple for Vale."
    • Brazil already is MOS's largest international market, generating $2.14B in net sales in 2015, or 24% of the company's total for the year.
    • Vale says it will retain its nitrogen and phosphate fertilizer assets in Cubatão, Brazil, which generated $108M in cash flow during 2015, but it expects to sell them in 2017.
    • Vale has been selling assets to help meet a $10B debt reduction target by next year.
    Dec. 19, 2016, 11:28 AM | 9 Comments
  • Aug. 3, 2016, 2:09 PM
    • Vale (VALE +5.6%) is considering raising as much as $10B from the sale of up to 3% of future iron ore output to undisclosed Chinese companies, Reuters reports.
    • Such a deal, along with a series of planned asset sales, could help CEO Murilo Ferreira reach his goal of reducing Vale's $27.5B net debt by a third over the next 18 months; according to eutsche Bank's Rene Kleyweg, "monetizing a small stake" in iron ore operations could help Vale raise $7B-$10B.
    • Vale yesterday tweaked an existing streaming agreement it had reached in 2013 to sell future gold output from its Salobo copper mine, boosting the portion sold to Silver Wheaton to 75% from an initially agreed 50%; Vale will receive an upfront $800M payment.
    Aug. 3, 2016, 2:09 PM | 6 Comments
  • Dec. 27, 2013, 2:36 PM
    • 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
    Dec. 27, 2013, 2:36 PM | 4 Comments
  • Nov. 12, 2013, 3:32 AM
    • Vale (VALE) has sold a 19.6% holding in Norwegian aluminum-maker Norsk Hydro (NHYDY) for 10.18B Norwegian kroner ($1.66B).
    • Vale sold 407.1M shares in Hydro for 25 Norwegian kroners each; if a greenshoe option for 40.7M shares is exercised, Vale will have sold its entire 21.6% interest for 11.18B kroners ($1.82B), or little more than half the $3.53B value of the stake when the Brazilian mining company acquired it in 2011.
    • The divestment is part of Vale's strategy of selling non-core assets, putting projects on hold, and focusing on its more profitable iron-ore operations.
    • Prior to the deal yesterday, equity analyst Alan Glezer said he viewed the "likely transaction as positive, as it strengthens Vale's balance sheet, helping to alleviate part of the leverage pressure during an intense period of investment." (PR)
    Nov. 12, 2013, 3:32 AM | 1 Comment
  • Feb. 5, 2013, 5:52 PM

    Silver Wheaton’s (SLW) $1.9B purchase of Vale (VALE) gold streams should hike revenues generated from gold production from an average of 12% to a peak of ~25% in the next five years. The move is expected to immediately boost SLW’s production and cash flow profile by adding expected average gold production of 110K oz./year over the next 20 years, or ~$3.7B at prevailing gold prices, Jon Ogg calculates.

    Feb. 5, 2013, 5:52 PM | 7 Comments
  • Feb. 5, 2013, 5:27 PM

    Silver Wheaton (SLW) agrees to acquire from Vale (VALE) an amount of gold equal to 25% of the life of mine gold production from its Salobo Mine in Brazil, and 70% of the gold production for a 20-year term from some of its Sudbury Mines in Canada. SLW will pay $1.9B in cash, 10M warrants and ongoing payments of the lesser of $400 or the prevailing market price for each ounce of gold delivered under the agreement.

    Feb. 5, 2013, 5:27 PM | 7 Comments
  • Jan. 24, 2013, 10:34 AM

    Commodity prices are rebounding, but don’t expect megadeals in mining as a new crop of CEOs takes over, WSJ reports. At least 20 mining CEOs have stepped down in the past year, some related to unsuccessful acquisitions, and big deals are unlikely when many CEOs are new to their roles. "There will be M&A but it is likely to be very strategic, brownfield-related and very carefully thought through.”

    Jan. 24, 2013, 10:34 AM | 2 Comments
  • Sep. 6, 2012, 5:08 AM

    Peabody (BTU) scraps the $500M sale of a thermal-coal mine in Queensland after receiving no worthwhile bids, Reuters reports. The move adds to nearly $15B of deals shelved or postponed in Australia this year as commodity prices drop. Other deals set to be pulled include Vale's (VALE) $500M sale of a mine and BG's sale of a $2B stake in an LNG project.

    Sep. 6, 2012, 5:08 AM
  • Feb. 7, 2012, 11:49 AM
    For anyone keeping score (and the shareholders are), in early 2008, Xstrata (XSRAY.PK), rejected a $76B offer from Brazil's VALE. Today, the board accepted Glencore's (GLCNF.PK) $61.9B bid. (h/t Jeremy Warner) Feb. 7, 2012, 11:49 AM
  • Nov. 10, 2011, 4:30 AM

    Mitsubishi (MSBHY.PK) pays $5.39B for a 24.5% stake in Anglo American's (AAUKY.PK) Chilean copper unit. The deal is Japan's largest ever mining acquisition and will almost double Mitsubishi's copper output at time when global demand is expected to increase over 40% by 2020. (PR)

    Nov. 10, 2011, 4:30 AM
  • May 31, 2011, 12:57 PM
    Contrary to Metorex stockholder calls for a 35% bigger bid from Vale (VALE), the existing $1.1B offer wins support from the target's biggest shareholder. A Metorex spokesman says the deal may have more than 50% support. May 31, 2011, 12:57 PM
  • Apr. 12, 2011, 2:06 PM

    Key shareholders of South Africa mining company Metorex say that Vale (VALE) needs to boost its $1.13B cash bid by some 35%, saying there are a small number of copper producers, and that Minmetals Resources offered a higher premium in its $6.3B bid for Equinox Minerals (EQXMF.PK).

    Apr. 12, 2011, 2:06 PM