Replies to post #2232 on The Rising Influence of Rising Affluence

[DewDiligence]

Good move by VALE, IMO—might as well monetize this asset while the valuation is sky-high.

You noted VALE’s acquisition of Bunge Corp’s retail fertilizer business in 2010 for $3.8B (#msg-45537699); I presume this will be included in the IPO.

[DewDiligence]

This CNBC blurb says VALE will be a beneficiary of the earthquake in Japan:

http://www.cnbc.com/id/42031085

Silly premise, IMO.

[DewDiligence]

VALE scraps plan for fertilizer spinoff:

http://www.reuters.com/article/2011/06/22/vale-fertilizers-idUSN1E75L26I20110622

I was in favor of this spinoff if it meant monetizing VALE’s overvalued assets, and I thought fertilizer assets were indeed overvalued in Mar 2011 when the spinoff plan was announced (#msg-60633830).

Valuations in the fertilizer industry have now regressed a little, which is presumably why the spinoff has been nixed. Instead, VALE will buy out the minority shareholders for $1.4B.