Looking for a specific product?

Make a search for products & suppliers, articles & news.

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

The Foundation Det Norske Veritas assumes full ownership of DNV GL and remains committed to Maritime headquarters in Hamburg

The merger between DNV and GL has created significant value,

Servogear has achieved the ISO 14001: 2015 environmental certificate

The certificate provides a framework that an organization can follow,

TechnipFMC opens 18,000m² facility to support Middle East market

The opening of the 18,000 m2 facility,

INDUSTRY 4.0 WILL CHANGE ISS

The 2017 Beerenberg seminar held earlier this year addressed the fourth industrial revolution.

The upside down advocate

The hulls of the robust Polarcirkel boats consists of resistant PE plastic,

DNV GL presents GTT and TECHNOLOG with GASA statement for exoskeleton LNG tanks

The solution has been developed for VLCVs with a capacity of 14,000 to 18,000 

DNV GL: Mix of flexibility solutions needed to stabilize power grids and avoid outages

In its recently published Energy Transition Outlook report (ETO),

Marintec China: DNV GL awards DSIC a pair of AiP certificates

Lu Xiao Hui, Vice President and Chief Technical Officer of DSIC,

DNV GL partners with SP Energy Networks to develop local flexibility market and reduce carbon emissions by over 3 megatonnes

The flexibility market will be based on the Universal Smart Energy Framework (USEF),