December 10, 2012


Yara buys Bunge's fertiliser business in Brazil



In order to strengthen its fertiliser position in the country, Yara International ASA has entered into an agreement to acquire Bunge's fertiliser business in Brazil.


The proposed transaction is valued at US$750 million, and will be subject to the approval of Brazilian competition authorities (CADE) and other customary approvals. Yara and Bunge have also agreed to enter into a long-term fertiliser supply agreement, enabling Bunge to continue supplying fertiliser to farmers as part of its grain origination activities and creating a framework for logistics and other commercial activities.

"I am pleased to announce this important move in Brazil, building further scale for Yara following previous acquisitions in 2000 and 2006. Brazil is a key growth market where there is significant further potential for acreage and yield increases. Today's agreement also creates a strong platform for future growth opportunities within the Brazilian fertiliser industry," said Jørgen Ole Haslestad, President and Chief Executive Officer of Yara.
Bunge operates 22 blending units across Brazil, delivering 4.8 million tonnes of fertiliser products in 2011, with revenues of US$2,648 million and an adjusted EBITDA of US$77 million.
The US$750 million enterprise value comprises a net operating capital value of US$385 million and other assets valued at US$365 million. The operating capital value is subject to post-closing adjustment.


With this agreement, Yara reinforces its position as a significant fertiliser company in Brazil, with a well-anchored local commitment combined with global leadership in safe and reliable production and the largest fertiliser trade network globally. This positions Yara as a key enabler for competitive fertiliser supply to Brazil and future fertiliser growth opportunities in the country.

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