Vale Says Fertilizer IPO Next Year

A spinoff of Vale’s diverse fertilizer assets will likely take place next year, and is taking time due to the diverse number of assets to be grouped together. “We are trying to group all of our assets together during the next 5-6 months to be ready to go to the market next year,” Mario Barbosa, head of Vale’s fertilizer unit, tells reporters following a presentation to analysts and investors in New York. The Brazilian miner, which spent $4.59bn in January to buy a controlling stake of fertilizer maker Fosfertil, must bring together assets in countries including Brazil, Argentina, Canada, Mozambique and Peru to prepare for the spinoff. Barbosa does not specify where the listing or listings will be, but CEO Roger Agnelli, speaking at the same event, notes that Fosfertil is listed in Sao Paulo and Vale would like to maintain the presence there, though with an increased size. Vale plans to grow organically, rather than through acquisitions, Agnelli says, as it has strong enough cashflow to expand existing operations in different countries. It plans to spend $26bn-$28bn on capex in the next 2 years. Vale will not need to increase leverage to fund itself, CFO Guilherme Cavalcanti tells LatinFinance on the sidelines of the event. It does not have immediate debt issuance plans, but does not rule out liability management transactions if costs of funds can be lowered significantly, he adds.