Brazil's Vale, the world's largest iron ore maker, said it is planning to sell up to 49% of its fertilizer business in an initial public offering in the second half of this year. The company is considering a sale of 25% to 49% in the business, which Vale made $5.8 billion in acquisitions last year to bolster.
Vale (VALE) is looking to invest about $2.5 billion in its fertilizer business this year. The company will seek to almost triple potash and phosphate rock output to 16.1 million metric tons by 2015 to meet soaring demand, Bloomberg News reported.
More asset purchases for Vale's fertilizer unit are unlikely before the IPO, Bloomberg reported. In the past two years, Vale has bought fertilizer assets from Rio Tinto (RIO), the world's third-largest mining company, and Bunge (BG).
The Vale fertilizer IPO will not be ready during the current quarter. The company produced 662,000 metric tons of potash last year.
Home
Peak Oil Facts
