2.2.0.7 false Major acquisitions and disposals 0205 - Disclosure - Major acquisitions and disposals true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Major acquisitions and disposals [Abstract] 0 vale_MajorAcquisitionsAndDisposalsAbstract vale false na duration Major acquisitions and disposals. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Major acquisitions and disposals. false 3 Major acquisitions and disposals 1 vale_MajorAcquisitionsAndDispositionsTextBlock vale false na duration Represent the business acquisitions and disposals made by the Company in the period. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div align="left" style="font-family: Helvetica,Arial,sans-serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>5 Major acquisitions and disposals</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><b>a) Fertilizers Businesses</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In line with our strategy to become a leading global player in the fertilizer business, on May 27, 2010 we acquired 58.6% of the equity capital of Fertilizantes Fosfatados S.A. — Fosfertil (Fosfertil) and the Brazilian fertilizer assets of Bunge Participações e Investimentos S.A. (BPI), currently renamed Vale Fosfatados S.A for a total of US$ 4.7 billion in cash. As part of this acquisition, we have an option contract to acquire additional 20,27% stake in Fosfertil, for US$ 1.0 billion, which is expected to be exercised in the near future. Also, we will launch a mandatory offer to acquire the 0.19% of the common shares held by the noncontrolling stockholders. </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif"> <div align="right" style="font-size: 10pt; margin-top: 12pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Due to the recent closing of this transaction, information about the purchase price allocation presented below based on the fair values of identified assets acquired and liabilities assumed is preliminary. Such allocation, currently being performed internally by the Company, will be finalized during future periods, and accordingly, the preliminary purchase price allocation information set forth below is subject to revision, which may be material. </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Purchase price </div></td> <td> </td> <td> </td> <td align="right">4,710</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Noncontrolling interests consideration (*) </div></td> <td> </td> <td> </td> <td align="right">1,793</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Book value of assets acquired and liabilities assumed, net </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(2,382</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Adjustment to fair value of property, plant and equipment and mineral properties </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(5,043</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Adjustment to fair value of inventories </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(98</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred taxes on the above adjustments </div></td> <td> </td> <td> </td> <td align="right">1,748</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Goodwill</b> </div></td> <td> </td> <td> </td> <td align="right"><b>728</b></td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(*)</td> <td> </td> <td>Noncontrolling interests consideration is calculated based on the option contract and market prices for the remaining noncontrolling interest.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">If the acquisition of these assets had been completed on January 1, 2010, our net income would increased by US$44 and our net revenues would increase by US$461. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The goodwill balance arises primarily due to the synergies between the acquired assets and the potash operations in Taquari-Vassouras, Caranalita, Rio Colorado and Neuquém and phosphates in is Bayóvar I and II, in Peru, and Evate, in Mozambique. The future development of our projects combined with the acquisition of the portfolio of fertilizer assets will allow Vale to be one of the top players in the world fertilizer business. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><b>b) Other transactions</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">As part of our efforts to meet our future production targets, we acquired 51% interest on iron ore concession rights in Simandou South (Zogota), Guinea and iron ore exploration permits in Simandou North. From this amount, US$500 is payable immediately and the remaining US$2 billion upon achievement of specific milestones. This joint venture is also committed to renovate 660 km of the Trans-Guinea railway for passenger transportation and light commercial use. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In June 2010, we acquired an additional 24.5% stake in the Belvedere coal project (Belvedere) for US$92 (R$168) from AMCI Investments Pty Ltd (AMCI). As an outcome of this transaction, Vale increased its participation in Belvedere to 75.5% from 51.0%. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In May 2010, we entered into agreement with Oman Oil Company S.A.O.C. (OOC), a company wholly-owned by the Government of the Sultanate of Oman, to sell 30% of Vale Oman Pelletizing Company LLC (VOPC), for US$125. The transaction remains subject to the terms set forth in the definitive share purchase agreement to be signed after the fulfillment of precedent conditions. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">On July 7, 2010, we concluded the sale of minority stakes in the Bayóvar project in Peru through the newly-formed company MVM Resources International B.V. (MVM). We sold 35% of the total capital of MVM to Mosaic for US$385 and 25% to Mitsui for US$275. Vale retains control of the Bayóvar project, holding 40% stake of the total capital of the newly-formed company. The capital amount invested as at June 30, 2010 was approximately US$400. The gain on this transaction will be accounted for in equity in accordance with the accounting rules related to the gains/losses when control is retained. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">We have entered into negotiations and agreements to sell our Kaolin, aluminum and alumina assets. For further details see note 10. </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock Represent the business acquisitions and disposals made by the Company in the period. No authoritative reference available. false 1 2 false UnKnown UnKnown UnKnown false true