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Brazil: CADE must decide on VALE mining merger, judge rules

By  |  March 26, 2019
The Administrative Council of Economic Defense (CADE) of Brazil will have to decide before August whether VALE, the Brazilian steel giant, will be allowed to purchase mining company Ferrous, as determined by a court of the 5th District of the Federal District.

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    The purchase, announced in December 2018, values ​​the agreement at around US$550 million. Ferrous operates iron ore mines in areas close to Vale’s operations in the state of Minas Gerais.

    The law of the Brazilian Competition System holds that cases that have not been judged by the CADE within the established period are approved automatically. For this reason, Judge Diana Wanderlei determined that the Public Authority cannot ignore the case, particularly in light of the devastating accidents and social damages caused by the rupture of dams in Vale operations in the towns of Brumadinho and Mariana, both in Minas Gerais

    “The recent events involving the breaking of dams belonging to the mining company that requires the concentration, or its modus operandi, demand a rigid attention from the authorities …” explained the magistrate.
    Full Content: Juristas

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