Caemi
 | |
| Company type | Public (Bovespa:) |
|---|---|
| Industry | Mining, Logistics |
| Founded | Quadrilátero Ferrífero, Iron Quadrangle, Minas Gerais 1942[1] |
| Headquarters | Nova Lima, Brazil |
Key people | Augusto Antunes (founder) |
| Products | raw materials, logistics and railway transport |
| Revenue |  $2.3 billion USD (2005) |
| $824 million (2005)[2] | |
| Parent | Vale |
| Subsidiaries | CADAM, MBR |
Caemi Mineração e Metallurgia S.A. was a major Brazilian mining holding company that ceased to exist in December 2006 after it was merged into Vale. Caemi means Companhia Auxiliar de Empresas de Mineração.
Operations[edit]
The company owned iron ore mines in the so-called Iron Quadrangle region of the state of Minas Gerais, and kaolin mines in the northern states of Amapá and Pará. The company also owned a stake in MRS Logística, which owns a railway network in southeastern Brazil. Caemi's stock was traded on Bovespa.
MBR – Minerações Brasileiras Reunidas[edit]
Caemi started MBR in a partnership with M. A. Hanna Company in 1965.[3] MBR since 1971 had been the second biggest iron ore producer in Brazil,[4] mining in 2005 over 50 million tonnes of iron ore[5] or around 25% of Brazilian production.[6]
MBR until Vale acquired 100% of Caemi's capital in 2006 was owned by two companies: Caemi and EBM (Empreendimentos Brasileiros de Mineração S.A.). Caemi had a 49% stake at MBR while EBM owned the other 51% of the company. The problem is that Caemi also owned 70.1% of EBM, this fact brings Caemi's total stake at MBR to 84.75%. Caemi's 84.75% participation at MBR is recognized at the company's 2005 Annual Report, which was Caemi's last.[7]
EBM, besides Caemi had two other investors:
- Vale owned 9.9% of EBM since 2001, participation which was purchased from Bethlehem Steel[8]
- Japanese investors owned the remaining 20% of EBM[9] and in this group were included the following companies: Mitsui,[10] Nisshin Steel, Nippon Steel, Mitsubishi Corporation, JFE Steel, Itochu, Sumitomo Group, Marubeni and Kobe Steel.[9][11]
Vale acquires MBR[edit]
After Vale bought 100% of Caemi, Vale's stake at MBR reached 89.8%, that's because Vale became the owner of Caemi's 84.75% stake at MBR and Vale already indirectly owned 5.05% of MBR through its 9.9% stake at EBM.[9]
This meant that Vale had only to acquire the remaining 20% of EBM at the hands of the Japanese investors in order to become owner of 100% of MBR. This objective was achieved in May 2007 when Vale bought for $231 million 6.25% of EBM from the Japanese investors and simultaneously leased the 13.75% left from the Japanese group in exchange for a down payment of $60.5 million and annual fee of $48.1 million for the next 30 years.[9][11] Vale now owns 100% of MBR.
Vale acquires Caemi[edit]
The mining company Vale bought between 2001 and 2006 100% of Caemi's capital for a total cost of $3.2 billion.
Back in 2001 Vale bought for $278.7 million 16.82% of Caemi's capital[12] then in 2003 Vale purchased Mitsui's participation on Caemi for $426.4 million,[13] raising Vale's participation to 60.2% of Caemi's total capital.
Finally on 31 March 2006 Vale purchased the remaining 39.8% of Caemi's capital in a stock swap deal worth $2.5 billion.[14] In May the company's shares stopped being negotiated at Bovespa[1] and then in December Caemi was merged into Vale and ceased to exist.[14]
References[edit]
- ^ a b "CAEMI". Archived from the original on 23 March 2005. Retrieved 12 December 2007.
- ^ Datamonitor – Caemi Mineraceo E Metallurgica SA – Company Research, Analysis Reports, News, Profile
- ^ "CAEMI". Archived from the original on 21 September 2005. Retrieved 14 December 2007.
- ^ MBR, Minerações Brasileiras Reunidas S.A., Company Profiles
- ^ SEC Info – Companhia Vale do Rio Doce, et al. – 20-F – For 12/31/05
- ^ SINFERBASE – Sindicato Nacional da Indústria da Extração do Ferro e Metais Básicos
- ^ http://200.150.146.163/publique/media/DFP%202005.pdf[permanent dead link]
- ^ SEC Info – Companhia Vale do Rio Doce – 20-F/A – For 12/31/00
- ^ a b c d "Vale". Archived from the original on 15 December 2007. Retrieved 18 December 2007.
- ^ "Reuters.com". Archived from the original on 29 August 2007. Retrieved 18 December 2007.
- ^ a b "Portal NewsComex – Logística e Comércio Exterior". Archived from the original on 6 July 2011. Retrieved 18 December 2007.
- ^ SEC Info – Companhia Vale do Rio Doce, et al. – 20-F – For 12/31/01
- ^ http://www.secinfo.com/svr4.173y[permanent dead link]
- ^ a b SEC Info – Companhia Vale do Rio Doce – 20-F – For 12/31/06