US Bunge completes $750m sale of Brazil ferts operations to Yara

09 August 2013 10:14  [Source: ICIS news]

LONDON (ICIS)--Bunge has completed the $750m (€563m) sale of its Brazilian fertilizer operations to Norway’s Yara International, the US agribusiness major said on Friday.

The divestment includes blending facilities, brands and warehouses and is subject to certain post-closing adjustments, Bunge said in a statement.

"This sale enables Bunge to size our Brazilian fertilizer activities so they are a more streamlined complement to our agribusiness operations," said Bunge’s CEO Soren Schroder.

"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," Schroder added.

In June, Yara obtained approval from authorities in Brazil to proceed with the purchase of the fertilizer segment.

Bunge will continue to supply fertilizer to farmers in Brazil as part of its grain origination activities and to operate its fertilizer terminal in the Port of Santos, it said.

Headquartered in White Plains, New York, Bunge operates in more than 40 countries and is involved in many aspects of agricultural services and products, including buying and transporting oilseeds and grains, and producing sugar and ethanol from sugarcane.

($1 = €0.75)

By: Graeme Paterson
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index