MMX Completes Porto Sudeste Sale to Trafigura-Mubadala

Eike Batista’s MMX Mineracao & Metalicos SA (MMXM3) mining unit completed the sale of a controlling stake in its Sudeste iron-ore port to Trafigura Beheer BV and Mubadala Development Co. for $400 million.

The two buyers also assumed about 1.3 billion reais ($553 million) in debt to gain 65 percent of the Sudeste terminal, according to a statement today. MMX will retain a 35 percent share in the terminal.

The companies have been negotiating the sale for more than five months since MMX announced a preliminary agreement on Sept. 10. The deal will provide Amsterdam-based Trafigura and Abu Dhabi’s sovereign wealth fund Mubadala with an export platform in Rio state’s Itaguai port for iron ore mined in landlocked Minas Gerais state and bound for Asia and Europe.

Batista, 57, has been selling stakes in his oil, logistics, utility and shipping ventures since May as missed targets, mounting debt and accumulating losses forced him to cancel projects and divest assets. With today’s expected deal, Trafigura and Mubadala are the latest international investors to grab assets from the former Rio-based billionaire after Germany’s EON SE, EIG Global Energy Partners LLC and Acron AG also acquired pieces of Batista’s conglomerate.

MMX fell 3.5 percent to 3.03 reais in Sao Paulo yesterday, the most since Feb. 10. The securities linked to port royalties, called MMXM11, surged 0.4 percent to 2.40 reais.

To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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