Vale Preps Fertilizer Buy-Up

Vale’s potash producing subsidiary is preparing to spend BRL2.2bn ($1.3bn) to acquire the rest of Vale Fertilizantes it doesn’t already own. The Brazilian miner’s Mineracao Naque is offering BRL25 per ordinary or common share, representing a 1.3% premium to Thursday’s BRL24.68 preferred share closing price. Vale holds about two-thirds of Vale Fertilizantes. The offer is subject to two-thirds acceptance from minority holders. The buyback is scheduled for December 12. The operation is part of a long-term Vale strategy to diversify, and also a planned reorganization of fertilizer operations where Fertilizantes would be combined with other assets and eventually refloated through a new IPO.