Yara International ASA announces the purchase of Bunge Limited's Brazilian fertilizer operations including blending facilities, brands and warehouses for $750 million. The deal is subject to post-closing adjustments, but Bunge is aiming to streamline their fertilizer activities in Brazil. Bunge will continue to service growers in Brazil as part of its grain origination activities.
"We are delighted that the transaction has been successfully completed. This sale enables Bunge to size our Brazilian fertilizer activities so they are a more streamlined complement to our agribusiness operations," stated Soren Schroder, Bunge's Chief Executive Officer. "The proceeds, when combined with reduced capital expenditures and expected lower working capital needs in the second half of 2013, will enhance our financial flexibility and strong balance sheet."
With a capacity of 32 blending units and three production sites, the new combined Yara Brazil is present in all the key agricultural production areas and segments, and is well positioned for continued growth.
"I am pleased to announce the closing of this acquisition, which allows us to proceed with the important work with integration, synergy harvest and positioning for further growth in Brazil. Yara intends to play a key role in the further development of Brazilian agribusiness," said Jørgen Ole Haslestad, President and Chief Executive Officer in Yara International.
Yara will consolidate the acquired business effective August 1, 2013, including possible goodwill, and measure all identifiable assets acquired and liabilities assumed at their acquisition-date fair values.