 "Bunge to pick 33% stake in UPL's associate firm Sinagro in Brazil")
Global agri-trade firm Bunge will acquire a 33 per cent stake in Brazil-based Sinagro, an associate company of India's leading agrochemical firm UPL Ltd.
UPL Ltd and other shareholders in Sinagro Produtos Agropecuarios SA, Brazil, (Sinagro) have entered into an agreement with Bunge in this regard.
Bunge Ltd will acquire a 33 per cent stake in Sinagro to strengthen its grain orientation strategy in Brazil, UPL said in a regulatory filing.
The deal value was not disclosed.
Sinagro is a reseller of grains and agricultural products based in Brazil.
Bunge is an agribusiness company specialising in soybean exports, food processing, grain trading and fertilisers with global operations.
The deal announced today is subject to approval by Brazil's antitrust body, Conselho Administrativo de Defesa Econmica (CADE).
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With a network of more than 30 stores and warehouses, and a footprint across seven Brazilian states, Sinagro is strategically positioned to support suppliers and final customers alike.
Rogerio Castro, CEO, UPL do Brasil, said: Together with UPL, this new partnership will strengthen Sinagro's bases across the board. This agreement will also accelerate the company's growth and expansion in Brazil.
Renato Guimaraes, President of Sinagro, said: "With this deal, we further strengthen our partnership with Bunge in a relationship that will generate mutual benefits".
"On our side, Bunge's expertise in risk management and its logistics capacity maximises our opportunities in the grain market, while we are aligned on sustainable, traceable, and verifiable production in the Brazilian Cerrado.
Rossano de Angelis Junior, Agribusiness VP, Bunge Ltd, said: This transaction will contribute to Bunge's grain origination capabilities and its access to producers in the region".
UPL is a global provider of sustainable agriculture products and solutions, with annual revenue exceeding USD 5.2 billion.