Today we cover major changes within mining giant Vale. How criminals are trying to influence the November 15 election. And the new trends of the coronavirus in Brazil.
Big changes ahead for Vale
Brazilian giant mining company Vale is set to make its biggest corporate change since privatization in 1997. On November 9, a 2017 agreement between its main shareholders will expire, and Vale is set to become a company without a controlling group.
- Vale is currently under the de facto control of a handful of major investors, who combine to own a one-third stake in the company. The deal for joint action allows the group to control the majority of board seats and dictate the strategies of the mining giant.
- As the deal expires, these major shareholders become free to sell just over 20 percent of the company’s equity. While most are expected to retain most of their shares, analysts see the Brazilian National Development Bank (BNDES) as a potential seller — in August, the bank sold BRL 8.1 billion in Vale shares in a single day. However, this movement should be tempered, in order to avoid depreciating the stock.
Why it matters. This process towards being a company without...