Yara to acquire Bunge's fertilizer business in Brazil
(Thomson Reuters ONE) -
Oslo (2012-12-07): Yara International ASA has entered into an agreement to
acquire Bunge's fertilizer business in Brazil, significantly strengthening its
fertilizer position in the country. The proposed transaction is valued at USD
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 fertilizer supply agreement, enabling Bunge to
continue supplying fertilizer 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 fertilizer industry," said Jørgen Ole
Haslestad, President and Chief Executive Officer of Yara.
"Our talks with Bunge to reach this agreement have been conducted in a positive
and constructive manner, and we look forward to expanding our cooperation with
Bunge in our role as a key input supplier to Brazilian agribusiness," said
Jørgen Ole Haslestad.
Bunge operates 22 blending units across Brazil, delivering 4.8 million tons of
fertilizer products in 2011, with revenues of USD 2,648 million and an adjusted
EBITDA of USD 77 million.
The USD 750 million enterprise value comprises a net operating capital value of
USD 385 million and other assets valued at USD 365 million. The operating
capital value is subject to post-closing adjustment.
Yara is targeting minimum annual synergies of USD 25 million within the
following main categories, fully realized by 2014:
* Supply chain synergies, comprising scale advantages in raw material sourcing
and freight and port operations
* Enlarged downstream footprint for distribution of premium products
* Operational and administrative synergies
With this agreement, Yara reinforces its position as a significant fertilizer
company in Brazil, with a well-anchored local commitment combined with global
leadership in safe and reliable production and the largest fertilizer trade
network globally. This positions Yara as a key enabler for competitive
fertilizer supply to Brazil and future fertilizer growth opportunities in the
country.
Contact
Thor Giæver, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 48 07 53 56
E-mail thor.giaver(at)yara.com
Bernhard Stormyr, Corporate Communications
Cellular (+47) 90 10 76 85
E-mail bernhard.stormyr(at)yara.com
Yara delivers solutions for sustainable agriculture and the environment. Our
fertilizers and crop nutrition programs help produce the food required for the
growing world population. Our industrial products and solutions reduce
emissions, improve air quality and support safe and efficient operations.
Founded in Norway in 1905, Yara has a worldwide presence with sales to 150
countries. Safety is always our top priority.
www.yara.com
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Yara International ASA via Thomson Reuters ONE
[HUG#1663051]
Unternehmensinformation / Kurzprofil:
Datum: 07.12.2012 - 08:01 Uhr
Sprache: Deutsch
News-ID 210644
Anzahl Zeichen: 4241
contact information:
Town:
Oslo
Kategorie:
Business News
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"Yara to acquire Bunge's fertilizer business in Brazil"
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