How would you like Dilma, Mategna and PT to run Vale?

Rumors that Brazilian federal government aims to replace Roger Agnelli, Vale’s CEO, have been surrounding the market for a long time. Yesterday, minister Guido Mantega, representing the Federal government as one large shareholder, officially requested Bradesco, another large shareholder, the substitution of Roger Agnelli as Vale CEO, according to Estado broadcast agency.

Roger Agnelli, Vale's CEO

Supposedly, the government wants Vale aligned to its policies.  According to Bank Banif, ” the Government wants to have a company, in which it does not hold control and with a majority of private investors, to follow its directives.” Is it a good thing for the company and for the country?

The company

Vale was a state-owned company from 1942 to 1977, when the control was sold to Valepar, which holds 52.7% of voting shares. Valepar shareholders are Littel (78.4% voting stake, controlled by Banco do Brasil), Bradespar (21.2% stake, controlled by Bradesco), Mitsui (18.2% stake) and the BNDES (11.5% stake, controlled by the Federal Government).

Vale is the subject of my master in history. It is funny because for the last 2 months I have been looking into the company’s privatization and the role of the state. Well, what do I think..? to be continued.. (but please take 2 seconds and share your view with us below)

Published by Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Group. She has a PhD in Economic History and advises companies and investment agencies in international business development.She served as Corporate Relations Director and later, on the board of the Brazilian Investment Analysts Association (APIMEC).

2 thoughts on “How would you like Dilma, Mategna and PT to run Vale?

  1. Any time any government has maintained control of any business — whether Brasil, Venezuela, Cuba, Greece, Italy, Ireland or the United States — they have only proven they can gum up a grease factory… Good intentions and $5 will always get you a cup of java at any coffee shop…


  2. The government’s priority is to promote national development, something that doesn’t happen at all here in the US (what is a shame). Anyway, back to Brazil…One of the reasons Agnelli is so disliked is that he took the decision to build a fleet of ships in East Asian instead of Brazil due to cost reasons. As a private company, Vale has a right to choices such as that one ….but if it still wants to take loans with subsidized rates from Brazilian public banks, it better act for the Brazilian public good. National development of the steel industry is also good for the Brazilian shipyard industry that is on the right path. the outlook for the Brazilian naval industry is moving to a better place (see 2nd link below). And the govt has a powerful weapon, public banks, to persuade private enterprises to keep investing locally.


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