Vale Contemplates Fosfertil Future

Vale is trying to decide whether to keep Fosfertil listed entity or take it private, says CFO Fabio Barbosa. “We’re analyzing our alternatives and will let the market know at the appropriate time,” he tells LatinFinance when asked about the company’s plans. With the exception of PT Inco in Indonesia, which bankers say has been kept public for practical reasons tied to local regulations, Vale has habitually taken all of its targets private. Itau analysts say it may make sense to keep Fosfertil a publicly traded entity that can finance itself and be used a platform for Vale’s growing fertilizer business. Last week, Vale acquired the remaining stake it did not own in Fosfertil, bringing ownership in the company to 100% of the common shares and 68% of the preferred shares, or 78% of the total capital. Vale says it is paying $1bn for Mosaic’s 25% stake in the company after having purchased stakes from Yara Brasil BPI, Heringer and Fertipar. The total value of Vale fertilizer acquisitions, done between January and last week, adds up to $5.6bn.