Yara International has sold its stake in Brazil's Fosfertil to mining giant Vale for $785m - booking a profit of $550m after less than four years from its investment in the phosphate group.

The Norwegian nitrogen group said that the 15.5% stake in Fosfertil, acquired with the acquisition of fertilizer distributor Fertibras in 2006, had limitations in achieving Yara's aims in Brazil, "an important growth market for fertilizer".

"A minority position in Fosfertil is not giving the optimal operational integration with Yara's fertilizer marketing in Brazil," says Jorgen Ole Haslestad, the Yata chief executive, said.

"We see the offer from Vale as an attractive price for a non-integrated position."

Rash of deals 

The disposal of the stake, which came with entitlement for a board seat, follows Vale's purchase earlier this week of a controlling stake in Fosfertil from Bunge, the US-based oilseeds crusher.

It also comes a day after Yara purchased, for $130m, the 50% of Balderton Fertilisers it did not already own.

The acquisition will "simplify and increase the integration" of the Swiss-based fertilizer trading group into Yara, the Norwegian group said.

London broker Icap said the Balderton deal, struck at 7.4 times average earnings before interest, tax, depreciation and amortisation (ebitda) between 2007-09, looked a "very good price".

"We see the deal being nominally accretive to earnings per share," Icap added.

Vale, in paying Bunge 12.6 times trailing ebitda for control of Vale, looked to have paid a "very full" price.

Yara said it was also selling to Vale, for a small profit, its 50% stake in Brazil's Anitapolis phosphate mine, which is still under development.