Agency to Investigate Sale of Brazilian Rare Earth Mining Company to U.S. Firm
Key takeaways
- According to Cade, the goal is to assess whether the transaction and a supply agreement signed by Serra Verde constitute a concentration act and whether they should have been submitted to antitrust authorities.
- In addition, Serra Verde announced a 15-year contract to supply 100% of the initial production from its mine to a special-purpose company funded by the U.S. government and private sources.
- Cade said the opening of the investigation does not necessarily mean there are irregularities or competition concerns.
Why this matters: an international story with cross-border implications worth tracking.
According to Cade, the goal is to assess whether the transaction and a supply agreement signed by Serra Verde constitute a concentration act and whether they should have been submitted to antitrust authorities. The Brazilian company said it would not comment on the case.
The two companies decided to create a rare earth multinational with eight operations in Brazil, the United States, France and the United Kingdom, operating across the entire production chain, from mining to magnet manufacturing.
In addition, Serra Verde announced a 15-year contract to supply 100% of the initial production from its mine to a special-purpose company funded by the U.S. government and private sources.