BNDES buys stake in CVRD for US$521mn

Brazil's national development bank BNDES has approved the acquisition of 8.5% of Valepar, the holding company that controls Rio de Janeiro-based mining company CVRD (NYSE: RIO), the bank said in a statement. The bank acquired the stake, equal to 2.86% of the total capital of the mining giant, from the CVRD employee fund Investvale for 1.5bn reais (US$521mn). The BNDES said its goal is "to preserve a strategic position" in the largest diversified mining company in the Americas. With the acquisition, BNDES will participate in the formulation of CVRD's business strategy and fortify the company as a global player. Valepar owns 33.6% of CVRD's total capital, and 52.3% of its voting capital. CVRD is the world's largest producer and exporter of iron ore.