April 5, 2021

Bunge's deal to purchase soy plants in Brazil cancelled

Bunge's agreement to purchase two soy plants in Brazil has been cancelled because of a legal battle involving Imcopa, the owner of the plants, Reuters reported.

Bunge signed a commitment to purchase the soy plants from Imcopa on May 2020. This would have increased Bunge's oilseed plants in Brazil to 10.

Bunge is the biggest soybean producer and exporter in the world.

Imcopa intended to sell the assets to emerge from bankruptcy and told the court on March 24 that the Bunge agreement expired. Imcopa has asked for 120 days to search for a new buyer.

Imcopa told the court that the deal was cancelled because of legal disputes with the brewer, Cervejaria Petrópolis, that initially operated the two plants. The company also cited interference from two Panama-based companies Minefer and Triana that claim to be creditors of creditors of Imcopa.

Cervejaria Petrópolis was accused by Imcopa of breaching the leasing contract that was set to conclude in 2024.

In the agreement between Bunge and Imcopa, Bunge assented to BRL 1 billion (~US$174 million; BRL 1 = US$0.18) in debt attached to both soy facilities, plus pay BRL 50 million (~US$8.87 million) for the plants. Both plants had a capacity to process 1.5 million tonnes of soybeans annually.

- Reuters