Brazil Vale may quit buying Mosaic

August 25 MetalBiz--Market participants unveiled that Brazil Vale SA abandoned the plan of buying Mosaic Co. due to the huge pressure from the government.

It is reported that when Vale was reducing 2,000 employees, and thereby the government officials were not satisfied with its buying-Mosaic plan with US$25bln, which led to the collapse of plan.

Vale refused to give any comment on this report.

The Brazilian government has no right to control Vale, but state-owned BNDES is a part of the holding group, in addition, staff's pension fund of state-owned Bancodo Brasil SA, Previ also has a great impact on Vale.

Mosaic is controlled by Cargill Inc. and IMC Global Inc. The related reports were released in July, Roger Agnelli, CEO of Vale expressed that the company is seeking for the opportunity of developing the potassium business to meet the great demand for the increasing fertilizer from Brazil agriculture.

Vale is the largest iron ore producer all over the world, and Mosaic is the largest potash fertilizer producer and one of the largest potash companies.