Amidst a struggle involving the main shareholders and the government. Vale (VALE3) finally defined that nothing changes, for now, in command of the mining company.
In other words, Eduardo de Salles Bartolomeo stays. The company president’s term of office was extended until December 31, 2024, and the new succession process should only begin next year.
The executive must also support the transition to new leadership at the beginning of 2025. Bartolomeo will act as an advisor to the mining company until December 31, 2025.
Until last Friday’s decision (8), Vale was in the middle of a struggle involving the company’s management. On the one hand, the Japanese company Mitsui — which holds 6.31% of the mining company — and Cosan. On the other, Previ — with 8.71% — and Bradesco. In the middle, is the government.
The names of the former CEO of Suzano, Walter Schalka; from Cosan, Luís Guimarães, and; the former president of Banco do Brasil and Cielo, Paulo Caffarelli, were considered for Vale’s management chair.
At the beginning of the year, even the name of the former Minister of Finance. Guido Mantega was nominated by the government, but the strong penalization by the market, through actions, made the process unfeasible.
The choice for Salles to remain takes place amid a scenario of political pressure and depreciation of the VALE3 share of around 14.5% in 2024. In the market, this solution was seen as the most viable for the company at the moment.
The struggle in Vale’s succession
There was an impasse between two groups over whether Bartolomeo would remain in charge of Vale — his mandate expired on May 26.
Mitsui and Cosan defended the extension of the executive’s contract for around a year until the position was taken over by Luís Henrique Guimarães. Who was appointed advisor in April 2023 after leaving Cosan?
The bloc formed by Previ — the pension fund for Banco do Brasil employees — and Bradesco defended the replacement of Bartolomeo by an executive with an experienced profile in managing large companies.
In between, the government
As if the struggle between the two groups over the succession of Vale’s CEO was not enough. The government had also been trying to find a name for the mining company’s command — although it had repeatedly denied the influence maneuvers.
Until the end of January, the government was working behind the scenes to place former Finance Minister, Guido Mantega, in the role of president of Vale.
The pressure reached its peak with Minister Alexandre Silveira, of Mines and Energy, calling advisors to defend Mantega’s name, according to sources close to the matter.
The government, however, ended up backing down and giving up trying to place the former minister in the position of CEO of the mining company.
Only hours later, the Ministry of Transport notified Vale of a charge of R$25.7 billion in concessions renewed in advance at the end of the Jair Bolsonaro government.
Vale’s challenges go beyond succession
Vale’s shares entered 2024 in a negative position. A performance that reflects the poor outlook for iron ore demand in the foreign market, especially in China.
The mining company also saw its debts rise with the government’s notification of charges for the early renewal of railway concessions and also the condemnation for the Mariana (MG) tragedy an amount reaching R$70 billion.
The emergence of new liabilities caused concern for investors who are following an unfavorable scenario for the mining company.
In 2023, the most important company on the Ibovespa ended the year with a drop of 5.73%, the worst annual performance since 2015.