April 6, 2016 / 2:11 PM / 2 years ago

Brazil's Vale, Yara deny in talks over fertilizer unit stake

BRASILIA (Reuters) - Vale SA denied a report on Wednesday that it was negotiating a sale of fertilizer assets to Norway’s Yara International as the Brazilian miner seeks to raise cash following its biggest quarterly loss in decades.

A view shows the company logo of Brazilian mining company Vale SA at its headquarters in downtown Rio de Janeiro August 20, 2014. REUTERS/Pilar Olivares

Valor Economico, a Brazilian business newspaper, reported Vale could sell a minority stake in its fertilizer unit by the end of the year and suggested the Norwegian firm would be a good match for the assets. Citing unnamed sources, Valor said the deal could yield Vale $1.2 billion.

Yara, in an email to Reuters, also denied any negotiations were under way.

Vale is seeking to sell $10 billion in assets over the next 18 months after taking a massive loss in the fourth quarter of 2015, but analysts have told Reuters a fire sale could destroy equity value.

Meanwhile, Yara has said it plans to increase investment in a bid to become more competitive and grow its business.

Reporting by Silvio Cascione; Editing by Bill Trott and Paul Simao

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