• Categories
  • Archives

Brazil’s CVRD Buys Canadian Inco and Becomes World’s Second Largest Mining Co

The Brazilian mining company CVRD (Companhia Vale do Rio Doce) announced today, October 24, the purchase of 75.66% of the capital of Canadian mining company Inco.

A total of 174,623,019 common shares were purchased for 86,00 Canadian dollars each, totaling over 15 billion Canadian dollars, or US$ 13.3 billion. This is Brazil’s biggest purchase ever.

With the purchase of Inco, which is specialized in the production of nickel, the Brazilian company has become the second greatest mining company in the world, losing only to the Australian firm BHP Billiton.

CVRD’s market value is about US$ 55 billion now after the acquisition.

CVRD was created in 1942 by Brazilian President Getúlio Vargas and privatized by Fernando Henrique Cardoso in 1997.

The Brazilian company was trying to get Inco for the last three months. Among those also vying for the Canadian firm were the American company Phelps Dodgee and Canadian Teck Cominco.

Inco is a world leader in the production of nickel. Last year, the company earned US$ 4.518 billion with a profit of US$ 836 million.
 
Companhia Vale do Rio Doce will maintain Toronto as its headquarters for the nickel business. The company has a presence in five continents: the Americas, Europe, Oceania, Asia and Africa.

Tags:

  • Show Comments (1)

  • Cora H.Etter

    Pres./Owner Comac Holdings Ltd
    Without my permission or authorization my shares in Inco were sold and cash deposited
    to my account with CIBC /Wood Gundy.WHY??
    I DID NOT WANT THIS TO HAPPEN. Granted the number of shares were small but that is not
    the point..I now have to pay capital gains and I had made other arrangements re the
    disposal of those and other shares.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Despite Progress Brazilian Workers Without Contract Are Still 12% of Total

In Brazil, the number of workers in the private sector shadow economy (sem carteira ...

Brazilian Metal Company Plans to Compete with China in Arab Market

Soprano, manufacturer of iron fittings and hydraulic equipments based in the city of Farroupilha, ...

Despite Weak Dollar Brazil’s Surplus Soars

Brazil’s trade balance achieved a US$ 2.183 billion surplus in January. The most outstanding ...

Lack of Hygiene in Hospitals in Brasília Kills 22 People

After the death of four more people victims of the KPC superbacteria in Brazil’s ...

Waiting, Waiting for a Doctor in Rio

The Brazilian Institute for Social Welfare is relatively serious about  what it proposes to ...

Instead of Waiting to Grow to Share Brazil Is Sharing to Grow, Says Lula

Conventional wisdom has it that you grow in order to distribute income. According to ...

Rice Goes to Brazil to Discuss FTAA and Venezuela

United States Secretary of State Condoleezza Rice arrives in Brazil next tomorrow. It is ...

Brazilian Bank to Give US$ 100,000 Award to Amazon Project with Zero Destruction

Brazil’s Banco da Amazônia is launching the Banco da Amazônia Award for Conscious Entrepreneurship ...

Brazil: Rio’s War of the Drug Lords

In anticipation of war for the favela’s drug trade, Rocinha’s drug-traffickers are currently recruiting ...

Brazil Wants Better Qualification for Its 6 Million Domestic Workers

In 2006, Brazil’s federal government plans to strengthen affirmative actions in the labor field. ...