MMX, Batista’s mining sells control of its Southeast Port
Agreement provides for the payment of $ 400 million and assumed debt of MMX for $ 596 million
Trafigura Beheer and Mubadala Development Company agreed to buy a majority stake in the iron ore port of Eike Batista in Brazil for U.S. $ 400 million and assumed debt, with which earned an important position in the second largest exporter of materials country for manufacturing steel.
The commodities trader Trafigura and Abu Dhabi’s sovereign wealth fund, Mubadala, will purchase 65% of the miner MMX unit Mineracao & Metalicos. This controls the Southeast port in Rio de Janeiro state, MMX published Monday.
With the new drivers, known as PortCo unit, will assume about $ 596 million in debt MMX mining business, said the company, confirming a preliminary agreement last month.
Trafigura, the second largest metals trader, will take control of Southeast project in Itaguai port in the state of Rio de Janeiro and provide a path to Europe and Asia for iron producers located in the interior of Minas Gerais, the largest Brazilian mining state, including ArcelorMittal. Vale, the largest iron ore producer in the world and National Steel, also operate Itaguai terminal, which is connected with Minas Gerais through a railroad.
After the operation, MMX will keep 35% of PortCo and as part of a shareholder agreement with Trafigura and Mubadala will be entitled to appoint a board member in the joint venture. MMX will also have the option to purchase 7.5% of additional shares in PortCo.
It is expected that the business is closed before the end of the year, said those involved in the acquisition to Bloomberg. MMX shareholders will not have preferential rights in the transaction because PortCo is not a complete control subsidiary of the Company, said MMX.
Source: Diario Financiero
