Bunge sells Brazilian fertilizer business to Yara

Bunge Limited, a leading global agribusiness and food company that operates in more than 40 countries, has confirmed a definite agreement to sell its Brazilian fertilizer business. The agreement includes the sale of blending facilities, brands and warehouse to Yara International ASA for US$750 million cash, subject to post-closing adjustments; the agreement will likely be finalized in the second half of 2013.
Bunge and Yara have also entered into a long-term agreement, which stipulates that Bunge will continue to supply fertilizer to farmers as part of its grain origination activities. Furthermore, Bunge will help create a framework for logistics and other commercial activities in connection with fertilizer sales. Under the agreement, Bunge will retain its Brazilian Port of Santos fertilizer terminal and continue to operate it.
Alberto Weisser, Bunge’s chairman and CEO, said that the transaction will enable Bunge to better complement its fertilizer activities with its agribusiness operations. On the other hand, Yara International will have a larger share in a high growth global agribusiness and environmental protection market.
Credit Suisse acted as Bunge’s financial advisor in the transaction. Bunge’s legal advisors were Souza Cescon Barrieu & Flesch Advogados and Shearman & Sterling LLP. (December 7, 2012)