Cia. Vale do Rio Doce, the world's biggest iron-ore producer, plans to sell all the shares it owns in steelmaker Usinas Siderurgicas de Minas Gerais SA.
The company, based in Rio de Janeiro, said in a filing with the Brazilian securities regulator that it intends to sell the 5.89 percent of voting shares the company holds in Usiminas, or 2.9 percent of the steelmaker's total shares.
Vale said it will respect the preference rights according to the shareholders agreement. The company did not specify when it would sell the shares.
Just last week, Vale got approval from Brazil's antitrust regulator to enter into the control group of Usiminas, as the steelmaker is known. Vale's interest in the group was approved without restrictions in a 4-to-1 vote, agency board member Fernando de Magalhaes Furlan said during a meeting on May 21. Cade, as the regulator is known, said Vale's participation won't harm competition.
Vale's partners in the controlling group of Usiminas include Grupo Nippon, a Japanese group led by Nippon Steel, Grupo Votorantim, Brazil's largest industrial conglomerate, and the cement unit of Brazilian construction group, Camargo Correa.
Last year, Vale sold a stake worth $728 million in Usiminas. Vale shares fell 35 centavos, or 0.6 percent, to 55.80 reais today in Sao Paulo. Usiminas shares rose 55 centavos, or 0.6 percent, to 89.25 reais.
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