Brazilian miner and iron ore producer Vale announced on Thursday it has acquired iron ore producer Ferrous Resources Limited. Vale said it expects to complete the $550 million transaction by next year. Ferrous Resources operates iron ore mines near Vale’s operations in Minas Gerais state.
Vale CEO Fabio Schvartsman told reporters on Thursday the deal is yet to be approved by local anti-trust authority, Cade. The executive said he is confident the deal will be approved.
“We think it’s reasonable for the deal to be approved,” he said. “Ferrous Resources is already operating today and it sells all its materials to Vale. So the net impact it may have in the market, if any, is very limited.”