Brazil’s CVRD in negotiations with Mitsui for Caemi
Brazilian
iron ore company Companhia
Vale do Rio Doce (CVRD) has approved the strategic guideline authorising negotiations with Japanese Mitsui & Co. for the acquisition of its common and preferred shares in the world's fourth largest
iron ore producer Caemi Mineraco e Metalurgica S. A. (Caemi).
In case of an agreement, CVRD will increase its 50% common shares, corresponding to 16.87% of its total capital of Caemi, to 100%. In addition to full control over the common shares, CVRD will also own 40% of Caemi's preferred shares. In case of such transaction receives approval of competition authorities, Ceami will continue to be traded on the Sao Paulo Stock Exchange as CVRD expresses that it has no intention to delist the company.
However, CVRD emphasizes that the negotiations are still ongoing and no agreement has yet been reached on commercial terms.