UPL Ltd. and other shareholders in Sinagro Produtos Agropecuarios SA., Brazil, (Sinagro) have announced an agreement in which Bunge Ltd. (Bunge) will acquire a 33% stake in Sinagro to strengthen its grain orientation strategy in Brazil.
Sinagro is a major reseller of grains and agricultural products with a significant presence in Brazil’s ‘Cerrado’ savanna region. Bunge is one of the world leaders in sourcing, processing, and supplying oilseed and grain products and ingredients.
The deal announced today is subject to approval by Brazil’s antitrust body, Conselho Administrativo de Defesa Econômica (‘CADE’), a statement said.
Rogerio Castro, CEO, UPL do Brasil, said: “UPL is pleased to have this strategic partnership with Bunge and welcomes Bunge’s contribution to Sinagro on several fronts. In addition to Bunge’s origination, logistics, and risk management expertise, which is undeniable, Bunge is a company with an outstanding global reputation and a strong presence in Brazilian agribusiness. 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 maximizes 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 to its access to producers in the region. In addition, Sinagro and Bunge are closely aligned on their global vision of being the preferred partner in sustainable solutions for oilseeds, commodities, and related ingredients, both for farmers and end customers,” says Rossano de Angelis Junior, Bunge´s Agribusiness VP.
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