Bunge Limited (BG) announced Friday that it has entered into a definitive agreement with Yara International ASA under which Yara will acquire Bunge's Brazilian fertilizer business, including blending facilities, brands and warehouses, for $750 million in cash.
Bunge and Yara have also agreed to enter into a long-term fertilizer supply agreement, enabling Bunge to continue to supply fertilizer to farmers as part of its grain origination activities and creating a framework for logistics and other commercial activities related to fertilizer sales. Bunge will retain and continue to operate its fertilizer terminal in the Port of Santos, Brazil.
Alberto Weisser, Bunge's Chairman and Chief Executive Officer, stated, "The transaction is a good one for both companies. 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."
The transaction, which is expected to close in the second half of 2013, is subject to customary closing conditions, including the receipt of regulatory approvals in Brazil.