Brazilian anti-trust authority, Cade, approved with no restrictions the acquisition of Ferrous Resources by Vale, according to a document filing obtained by SteelOrbis.
Vale agreed to pay $550 million for Ferrous Resources. As the deal is now approved by Cade, Vale may close the transaction this year.
Vale’s CEO at the time, Fabio Schvartsman, said Ferrous Resources used to sell all its materials to Vale, so the net impact it would have in the market, if any, would be very limited.
Cade opposed during the process the argument that the deal would further concentrate Vale’s power in the pellet feed market. Cade also indicated Vallourec could start selling pellets this year, which would go against any arguments that Vale would dominate the market.