19 July 2013 14:41 [Source: ICIS news]
LONDON (ICIS)--Yara plans to acquire and construct new manufacturing facilities in Brazil as it looks to capitalise on its imminent acquisition of Bunge's Brazilian fertilizer business for $750m (€570m), a senior executive of the Norwegian fertilizer giant revealed on Friday.
"We hope to acquire and build production facilities in Brazil in both the upstream and downstream sectors," Yara CFO Torgeir Kvidal said during an earnings conference call.
"We are confident Bunge will prove to be a good acquisition and when we enter a market [like Brazil] we look to take advantage of the possibilities and build up the base for the next step."
In early June, Yara announced it had won approval from regulatory authorities in the Latin American country for its acquisition of Bunge's fertilizer business.
The company today reiterated its expectation that the acquisition, which was first announced in December 2012, will be completed during the current third quarter of 2013.
Bunge operates 22 blending units across Brazil and delivered 4.8m tonnes of fertilizer products in 2011. The firm's assets include a single super phosphate (SSP) plant with an annual production capacity of 300,000 tonnes, a port concession and a terminal development project.
As part of the deal, Yara and Bunge will enter into a long-term fertilizer supply agreement through which Bunge will continue to supply fertilizer to farmers as part of its grain origination activities and creating a framework for logistics and other commercial activities.($1 = €0.76)
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