WHITE PLAINS, N.Y. – Bunge Ltd. on Dec. 7 announced it has reached a definitive agreement to sell its fertilizer business in Brazil to Yara International ASA in a cash transaction for $750 million. Included in the transaction are blending facilities, brands and warehouses. Additionally, the companies will enter a long-term supply agreement allowing Bunge to supply fertilizer to growers in Brazil as part of its grain origination activities. The transaction does not include a fertilizer terminal in the port of Santos in Brazil. Subject to regulatory approvals and other closing conditions, the transaction is expected to close in the second half of 2013, Bunge said.
“The transaction is a good one for both companies,” said Alberto Weisser, Bunge chairman and chief executive officer. “It enables Bunge to size our fertilizer activities so they are a more streamlined complement to our agribusiness operations and provides Yara with a larger position in a high-growth market. We’re confident the transaction will provide benefits to our employees and customers, and that the business will continue to grow as part of Yara’s global portfolio.”
Bunge’s other fertilizer businesses include production, blending and distribution in Argentina, a wholesale business in the United States and a phosphate production joint venture in Morocco.