São Paulo – Fabio Schvartsman, the new chief executive officer of Vale, the world’s largest iron ore mining company, is one of Brazil’s most experienced managers when it comes to running vast operations.
His present company, Klabin, the largest paper and cardboard company in Latin America’s biggest economy, controls 235,000 hectares of eucalyptus and pine plantations and 210,000 of native forest.
But that did not make his appointment to replace Vale veteran Murilo Ferreira, announced late Monday, any less of a surprise to the market. “We must admit that this name comes as a surprise to investors — which had been speculating [on] different names,” said Leonardo Correa, analyst with BTG Pactual.
Most investors had been betting on present or former Vale executives getting the top manager job. Markets were concerned that there would be state interference in the selection of Mr Ferreira’s successor, with political parties wanting to install their own appointee.
The appointment of Mr Schvartsman will coincide with plans to end a controlling shareholder pact at Vale that has been in place for two decades.
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