Batista’s MMX Said to Seek Trafigura-Mubadala Deal Closing TodayJuan Pablo Spinetto
Eike Batista’s MMX Mineracao & Metalicos SA mining unit is seeking to complete the sale of an iron-ore port to Trafigura Beheer BV and Mubadala Development Co. as early as today, a person with knowledge of the deal said.
MMX representatives will probably sign the final agreement to sell a controlling stake in its Sudeste terminal during a meeting with Trafigura and Mubadala officials in Rio de Janeiro, the person said, declining to be named because the talks aren’t public. MMX and privately held Trafigura declined to comment while representatives for Mubadala didn’t immediately reply to an e-mail seeking comment.
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 today, the most since Feb. 10. The securities linked to port royalties, called MMXM11, surged 0.4 percent to 2.40 reais.