Brazil’s Supreme Court Confirms Vale’s Privatization: A Watershed Moment

The Superior Court of Justice in Brazil made a landmark ruling on August 28, 2024, declaring Vale’s privatization irreversible. Minister Mauro Campbell delivered the unanimous decision, putting an end to legal challenges surrounding Vale’s ownership, which has been a hot topic in Brazilian politics.

The court’s decision is significant as it sets a precedent for similar cases and solidifies Vale’s transition to private ownership, a process that began under President Cardoso and continued during Bolsonaro’s administration.

The formal decision will be published on September 2, 2024, with no room for reversal despite potential clarifications. This ruling coincided with the appointment of Gustavo Pimenta as Vale’s new CEO, marking a departure from governmental preferences.

The case of Vale’s privatization has been controversial, with President Lula advocating for different leadership at Vale. The reduction of the government’s stake in Vale during Bolsonaro’s term transformed the company’s ownership structure significantly.

The STJ’s decision showcases a commitment to market-driven reforms and signals a broader trend towards privatization in Brazil’s economy.