* Option to buy Mosaic's Fosfertil assets still stands
* Vale pays $4.7 bln for Bunge, Fosfertil assets
* Vale to buy rest of Fosfertil shares in tender offer
SAO PAULO, May 27 Vale, the Brazilian mining
company pushing into potash, said on Thursday that the $1.03
billion purchase of Mosaic's stake in Brazilian fertilizer
producer Fosfertil is likely to be concluded soon.
Vale (VALE.N), the world's largest iron ore miner, told
regulators it had sealed the purchase of 58.6 percent of
Fosfertil's capital and Brazilian fertilizer assets of Bunge
Ltd (BG.N) for a total $4.7 billion.
Rio de Janeiro-based Vale said an accord to buy Mosaic's
(MOS.N) 20.3 percent stake in Fosfertil's capital is still
under way. Vale said in a regulatory filing that the
transaction could be finalized in "the near future." It did not
The plan to acquire more potash assets is in line with Vale
Chief Executive Roger Agnelli's plan to grow and diversify its
revenue stream away from metals and minerals, boosting its
exposure to fertilizers. Vale's growing bets on fertilizer are
part of a strategy to benefit from rising global food
consumption and agricultural output in South America and Asia.
"The acquisition is in line with the strategy of becoming a
global leader in this industry," the filing said. "Given the
quality of the assets purchased, we expect returns considerably
outpacing our average cost of capital for the next years."
Early in 2009, Vale spent $850 million on the purchase of
potash assets in Argentina and Canada.
Agnelli recently indicated Vale is interested in smaller
acquisitions and that he hopes to achieve the company's
long-term growth goals through organic projects where he sees
the best value.
Among the assets that Vale bought from Bunge are phosphate
rock mines and phosphate assets and a direct and indirect stake
of 42.3 percent in the capital of Fosfertil.
Bunge decided to abandon phosphate mining in which it had
operated for years, after the sector recently grew more
competitive with major metals miners buying into it. A stronger
Brazilian currency has also pushed up costs.
Vale plans to buy out the remaining 0.2 percent stake of
Fosfertil held by minority shareholders in a tender offer that
will be filed in coming weeks, the filing added.
Preferred shares of Vale (VALE5.SA), the company's most
widely traded class of stock, surged 6.3 percent to 42.10
(Reporting by Guillermo Parra-Bernal, editing by Matthew