Vale Swallows $1.4bn Subsidiary

Brazilian miner Vale is acquiring its wholly owned subsidiary Mineracao Onca Puma, in the northern Brazilian state of Para. The company said in early 2007 that the project commands an investment of $1.4bn and focuses on nickel extraction. Vale says the point of the merger is to simplify the company’s corporate structure, improve resource allocation and cut costs. Vale shareholders will be asked to approve the maneuver.