Brazil's CVRD is unlikely to launch an offer to acquire Anglo-Australian miner Rio Tinto in the short term, Pedro Galdi, an investment analyst with ABN Amro Corretora, told BNamericas.
Rumors have surfaced of possible CVRD plans to acquire Rio Tinto , days after the buzz died down about a possible bid from Anglo-Australian BHP Billiton for Rio Tinto.
"There is a lot of speculation," Galdi said. "I believe CVRD will continue its expansion process through acquisitions, but their purchases are very down to earth. They would not buy just for the sake of buying."
In terms of large acquisitions, CVRD snapped up Canadian nickel miner Inco in 2006 and completed last month the refinancing of the two-year bridge loan worth US$14.6bn taken out to finance the deal. The Brazilian is unlikely to go for another bold acquisition, according to the analyst.
Rio de Janeiro-based CVRD, the world's largest iron ore producer, also has interests in alumina, aluminum, bauxite, kaolin, potash, and copper, among others, as well as railroads.