Wednesday, December 20, 2017

Chinese giant evaluates buying eucalyptus areas in the country by as much as $700 mi

The French steelmaker Vallourec, which produces steel pipes, put on sale with eucalyptus plantation farms in Minas Gerais that add up to 230,000 hectares. The forest assets are valued between $ $600 million and $ $700 million and attracted local and foreign investors, among them the giant China Forestry Group Corporation (CFGC), found the ' State '. The Chinese State, which hired banco Modal as financial advisor, still have not defined how it will structure the operation, since Brazil has restriction on the entry of foreign investors since 2010, after decision of the Attorney General of the Union (AGU), which banned groups international purchase control of agricultural properties. The Bill that frees the purchase of land by foreigners, provided in partnership with Brazilian companies, is standing in the Chamber after the information of the Batista brothers (owners of the JBS) surfaced. Newton Cardoso Jr. (PMDB-MG), Rapporteur of the project at City Hall, said he will try a new front in the Senate to approve the Bill, which provides greater flexibility for investments outside the country. Given this impasse, sources familiar with the negotiations involving the Vallourec stated that the Chinese Group evaluates whether partners with a Brazilian group to buy the forests or if will take only with the production of eucalyptus trees. Vallourec is advised by the Bank Moelis. Other national companies, such as Canadian investors and Suzano, would have looked at the deal, but were not ahead, according to sources. Wanted, Modal and Moelis had no comment. The CFGC did not return requests for interviews and Suzano reported that no comments market rumors. Vallourec did not confirm the deal. The agricultural properties of Vallourec are scattered by mines. The French use the wood for burning for charcoal production in their plants. But, with the global crisis of the steel industry, from 2015, Vallourec announced a restructuring of its international business. In Brazil, the Group shut down in 2016 2 of his three blast furnaces – Barreiro and Jeceaba, both in mines. The State focuses around 30% of forest properties in the country, but the assets do not have competitive prices on the logistics. At the end of 2016, Suzano bought the forested areas that add up to 70000 hectares, Queiroz Galvão group in Maranhao and Tocantins. The world's largest producer of pulp, the country is able to attract investments in excess of $ $50 billion in the coming years, said lawyer Aldo grew up, Secretary of the parliamentary front of forestry.
Painel Florestal - 18/12/2017 News Item translated automatically
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