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.
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 US$1.2 billion.
Yara, in an email to Reuters, also denied any negotiations were under way.
Vale is seeking to sell US$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 for Reuters by Silvio Cascione.