Bunge to sell Brazilian fertilizer assets to Vale?

Bunge Ltd. said late last week it is discussing with Vale the possibility of selling its fertilizer assets in Brazil, including a stake in Fosfértil, a major provider of raw materials for fertilizer producers and mixers in the country. The Brazilian miner tried to buy Mosaic, also a Fosfértil shareholder, six months ago, but withdrew before submitting a bid.

The deal with Bunge could be worth US$ 3.8 billion and be Vale's biggest acquisition since the US$ 18.2 billion takeover of Inco in 2006, and a further step in the company's diversification strategy. But some rumours have that Bunge wants to leave Brazil as the company is concerned with the government’s move to reform the country's mining regulations, increasing taxes and royalties to stimulate domestic fertilizer production.