CADE approves the sale of constrained by Vale Fosbrasil

The Administrative Council for economic Defense (Cade) approved with restrictions on the sale of the shareholding of 44.25 percent owned by mining company Vale in Fosbrasil for Israel Chemicals Ltd (ICL). The decision was unanimous.
The Fosbrasil produces phosphoric acid and salts used in the production of fertilizers and animal feed in Cajati (SP). The transaction was announced in December 2013, amounting to $ 52 million.
The Court defined adjustments set for Fosbrasil products, based on limits of prices that can be charged by ICL.
The values are confidential and are for products like the NGA, raw material used in the manufacture of phosphoric acid. The restriction will be for eight years, until the entry of a national competitor in the market.
Companies should also suspend the non-competition clause signed between them so that the Fosbrasil in the enter on the market of Fertilizers Valley for five years.
The Rapporteur of the case, Councilwoman Ana Frazão, stated that the closure of the capital by the ICL could lead the company to adopt "discriminatory conduct the rivals".
"With the exit of the Valley of Fosbrasil, it is reasonable to imagine that the ICL can adopt strategy to discriminate against its competitors," he said.
The Administrative Court had already evaluated, by means of the General Superintendence of the Cade, the concentration Fosbrasil under the ICL could lead the company to refuse to sell acid (PPA) used for the production of phosphate salts and thus raise prices.
In fact from 2013, in which announced the transaction, Worth championed the sale of Fosbrasil as part of the focus on "strategic assets" to the mining business.
"The transaction is consistent with the strategy of the Valley to prioritize investment in world-class strategic assets and constitutes another step in the process of simplifying its portfolio", recorded.