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)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections