Brazil's Vale acquires Inco to become world's No. 2 miner

Companhia Vale do Rio Doce, the world's top iron ore miner, said Tuesday it has acquired a 75.66 percent stake in Canada's Inco Ltd. for $13.31 billion (about 1.6 trillion yen) to try to diversify its business.
According to the Associated Press, the acquisition will turn Rio de Janeiro-based Vale into the world's second-largest mining firm after the Anglo-Australian BHP Billiton Ltd. Vale said it will acquire the remaining shares.
Nickel is used in a wide range of products from stainless steel to batteries, and demand for it is increasing rapidly in line with the economic development of China and India.
U.S. copper producer Phelps Dodge Corp. said in June it had agreed with Inco on the acquisition of the Canadian company. But Vale made an all-cash buyout proposal in August, prompting Inco to drop its accord with Phelps Dodge and accept the new offer.