By Jeffrey T. Lewis


SÃO PAULO--Brazilian transportation, energy and sugar conglomerate Cosan SA's shares fell another 6.7% after it said on Friday it acquired a 4.9% stake in Brazilian iron miner Vale SA.

Cosan shares fell to 15.54 reais, the equivalent of $3, and are down about 16% from the end of 2021 through Thursday's close. The benchmark Ibovespa stocks index was down 0.2% at in mid-morning tradng, while Vale's shares were down 2%.

Cosan's shares fell 8.7% on Friday.

Cosan said Friday afternoon that it acquired the stake via direct purchases and through a derivatives operation. A second derivatives operation would be used to buy another 1.9% stake in Vale if it is approved by Brazil's competition regulator, Cosan said.

The acquisition is part of a strategy to diversify Cosan's portfolio and add assets in sectors where Brazil has a clear competitive advantage, Cosan said Friday. Credit Suisse analysts said Monday they could see no clear synergies between the two companies.


Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com


(END) Dow Jones Newswires

10-10-22 1039ET