CVRD in $426m iron-ore acquisition

5th September 2003

Brazilian miner Companhia Vale do Rio Doce (CVRD) announced yesterday the conclusion of the acquisition of 50% of the ordinary shares and 40% of the preferred shares of iron-ore miner Caemi Mineracao e Metalurgia SA from Mitsui & Company for $426,4-million.

CVRD now has full control of the ordinary shares and 40% of the preferred shares, or 60,2% of the total capital of Caemi.

This transaction was concluded in accordance with the terms already publicly announced by CVRD on March 31, 2003.

CVRD had competed with BHP Billiton for the controlling stake, and earlier on in the process was seen as having a disadvantage to the UK-Australian mining giant.