Brazilian anti-trust authority, Cade, has approved the acquisition of a controlling stake at Vale Pecém, a Vale subsidiary, by local slab producer Companhia Siderurgica do Pecém (CSP), a joint venture (JV) between Vale, Posco and Dongkuk Steel. Cade approved the transaction with no restrictions, SteelOrbis has learned.
As a result of the transaction, CSP now owns Vale Pecém. Vale Pecém was Vale’s subsidiary responsible for managing iron ore processing inside the CSP mill. According to Cade, Vale will still supply iron ore to CSP, since Vale Pecém did not supply the commodity for the slab producer, but only managed inventory and blended the iron ore for CSP’s use.
Vale’s stake at CSP did not change as a result of Vale Pecém’s acquisition by CSP. Vale owns a 50 percent stake at CSP, while Posco owns a 20 percent stake, and Dongkuk Steel the remaining 30 percent.