08 April 2022
J&F Investimentos has turned to Lefosse to purchase manganese and iron ore mines from Brazilian mining giant Vale for US$1.2 billion.
The seller turned to Madrona Advogados and Azevedo Sette Advogados. Madrona led the negotiations of the share purchase agreement and advised on the structuring of the transaction, while Azevedo Sette focused on due diligence matters.
The deal was signed on 6 April and is subject to approval by antitrust authority CADE.
Once complete, Brazilian investor J&F will assume control of Mineração Corumbaense Reunida, Mineração Mato Grosso, International Iron Company and Transbarge Navegación, which make up Vale’s Centro Oeste project.
The assets include manganese and iron ore mines, as well as logistics contracts held by Transbarge Navegación in Argentina, Paraguay and Uruguay.
Vale stated in a press release that the sale forms part of its strategy to simplify its portfolio.
The Centro Oeste project produced 2.7 million tonnes of iron ore and 200,000 tonnes of manganese ore in 2021. Manganese is used in iron and steel manufacturing.
Founded in 1953, J&F is a holding company involved in a variety of industries, including agribusiness, real estate, manufacturing and electricity generation. The group is owned and controlled by the Brazilian brothers Joesley and Wesley Batista.
In 2020, J&F pleaded guilty to charges of paying US$180 million worth of bribes to Brazilian officials in exchange for state-backed financing used to make acquisitions.
J&F is the parent company of meat processing conglomerate JBS and paper and pulp group Eldorado Brasil. In February 2021, an International Chamber of Commerce (ICC) tribunal ordered J&F to sell a 50.6% share in Eldorado to Indonesia’s Widjaja family. J&F filed an injunction to cancel the decision a month later. The dispute is ongoing.
Vale is the world’s largest producer of iron ore and nickel. Vale had an estimated market value of US$111 billion in 2021, making it Latin America’s most valuable company.
Back in October, local holding company Bradespar agreed to sell 5.26 billion reais (US$959 million) worth of shares in Vale.
Counsel to J&F Investimentos
Partner Carlos Mello and associate Luiza Rosário
Counsel to Vale
Partners Ricardo Madrona, Danilo Mininel, Eduardo Tristão and Juliano Okawa, and associates Isabella Dal Fabbro and Ricardo Brentani
Azevedo Sette Advogados
Partners Fernando Sette and Ana Paula Terra, and asssociate Pedro Henrique de Castro Oliveira