Yara to acquire Bunge's fertilizer business in Brazil

Yara International ASA has entered into an agreement to acquire Bunge's fertilizer business in Brazil, significantly strengthening its fertilizer position in the country. The proposed transaction is valued at USD 750 million, and will be subject to the approval of Brazilian competition authorities (CADE) and other customary approvals.

Yara and Bunge have also agreed to enter into a long-term fertilizer supply agreement, enabling Bunge to continue supplying fertilizer to farmers as part of its grain origination activities and creating a framework for logistics and other commercial activities.

"I am pleased to announce this important move in Brazil, building further scale for Yara following previous acquisitions in 2000 and 2006. Brazil is a key growth market where there is significant further potential for acreage and yield increases. Today's agreement also creates a strong platform for future growth opportunities within the Brazilian fertilizer industry," said Jørgen Ole Haslestad, President and Chief Executive Officer of Yara.

"Our talks with Bunge to reach this agreement have been conducted in a positive and constructive manner, and we look forward to expanding our cooperation with Bunge in our role as a key input supplier to Brazilian agribusiness," said Jørgen Ole Haslestad.

Bunge operates 22 blending units across Brazil, delivering 4.8 million tons of fertilizer products in 2011, with revenues of USD 2,648 million and an adjusted EBITDA of USD 77 million.

The USD 750 million enterprise value comprises a net operating capital value of USD 385 million and other assets valued at USD 365 million. The operating capital value is subject to post-closing adjustment.

Yara is targeting minimum annual synergies of USD 25 million within the following main categories, fully realized by 2014:

  • Supply chain synergies, comprising scale advantages in raw material sourcing and freight and port operations
  • Enlarged downstream footprint for distribution of premium products
  • Operational and administrative synergies

 

With this agreement, Yara reinforces its position as a significant fertilizer company in Brazil, with a well-anchored local commitment combined with global leadership in safe and reliable production and the largest fertilizer trade network globally. This positions Yara as a key enabler for competitive fertilizer supply to Brazil and future fertilizer growth opportunities in the country.

Associated companies:


Related news

Latest news

Jotne Subsea Gas Lift for Balder Field

In April 2015, Jotne E&P was awarded an EPC contract to build the subsea gas lift manifold for Exxon Mobil on the Balder Field.

Jotne Awarded Contract for Subsea Protection Structure

In January 2016, Jotne E&P was awarded a contract for the delivery of a subsea protection structure and GRP cover for a Xmas tree at Balder field. The contract was awarded by Ocean Installer.

UiB and CMR in high-tech collaboration

Students from UiB last month joined an experiment with an ultra-high-speed camera. This was a part of the troubleshooting of the Field Kelvin Probe currently under development.

Hatteland Display at International Workboat Show 2016

Hatteland Display are highlighting its diverse portfolio of maritime displays and panel computers on its booth (#1658) at the International Workboat Show 2016 (IWBS 2016) this week.

Servogear Announces Upcoming Events

Servogear announces a busy end of November, beginning of December. They will be participating at important international exhibitions.

Teamtec and ANDRITZ Cooperation

ANDRITZ and TeamTec have signed a cooperation agreement for worldwide marketing of the SeaSOx exhaust gas cleaning system for the maritime industry. 

Export Credit Norway looking for Norway's Best Exporter

Export Credit Norway  has now opened the nomination process for the 2017 Export Award, searching the Norwegian exporter of the year. 

Global Economic Outlook

7 December, Oslo Chamber of Commerce invites to a session with insightful updates on the Norwegian and international economy.

Rebuilding for Hydrogen

M/Y “Che Guevara”, previously owned by Gaddafi, will be converted to run on hydrogen. Greenstat will lead the project and are seeking partners.