• Categories
  • Archives

Vale Buys for US$ 3.8 Billion Bunge’s Fertilizer Operation in Brazil

Bunge BrazilBrazil’s mining company Vale and multinational company Bunge announced the signing of an agreement for the purchase, by the Brazilian enterprise, of assets pertaining to Bunge’s fertilizer manufacturing operations in Brazil.

The US$ 3.8 billion deal includes the nutrients business and Bunge’s stake in Fosfertil (Fertilizantes Fosfatados S.A.), a supplier of raw materials for fertilizer manufacturing. The transaction has a net value of roughly US$ 3.5 billion and does not involve fertilizer retail or distribution businesses.

Vale will acquire Bunge’s 42.3% stake in Fosfertil, as well as its fully-owned phosphate mines and manufacturing plants in Brazil. Bunge’s annual phosphate rock production capacity and its share of Fosfertil are equivalent to approximately 3 million tons.

Bunge will retain its fertilizer retail business in Brazil and will sign a deal to supply Vale up until 2012, with a one-year extension option. Bunge will also keep its fertilizer operations in Argentina and the United States, as well as its 50% stake in the joint venture with the Office Cherifien des Phosphates (OCP), in Morocco.

“This is an appropriate moment for us to leave fertilizer manufacturing in Brazil. In order to keep growing, we would have to invest significant capital. Given the uncertainties regarding international prices and the local exchange rates, we believe that it will be better to invest in other opportunities,” said Alberto Weisser, Bunge’s CEO, in a press release.

“Besides, large global mining companies are entering the sector and diversifying their mining portfolios. We are glad that our business will be transferred to Vale, which shares with Bunge a long-term commitment with Brazil,” added Weisser.

“This operation is of utmost importance to consolidating Vale’s strategy of targeting Brazil as the leading market for its phosphate derivatives production, given the potential of local mines, as well as the expansion of projects developed abroad, such as Bayóvar and, in the future, Evate, all of which will have their output destined mainly to the Brazilian market,” claimed Roger Agnelli, the president of Vale, also in a release.

“We are glad because the purchase of these assets, combined with the various potassium projects, which involve high-quality deposits in the main locations worldwide, contributes to Vale’s fast growth strategy, enabling the establishment of a new global leader in the fertilizer industry,” stated Agnelli.

Bunge expects the transaction, which is liable to the usual closing conditions, including government approval concerning mineral concessions, to be concluded in the second quarter of 2010.

Anba

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil's MST, Landless Workers Movement

Brazil’s Landless Break Up with Lula and Call Him Tragedy for Country

Last week the Brazilian Movement of Landless Rural Workers (MST) held its fifth National ...

New President of Brazil’s PTB Party Is No Politician

Deputy Roberto Jefferson’s decision to resign the presidency of the Brazilian Labor Party (PTB) ...

Brazil Adds Arabic and Cuts Salt to Sell Tuna to Iraq and Arab Market

Gomes da Costa, a Brazilian company, leader in the fishery market in Latin America, ...

Brazil Lends a Hand to Fight AIDS in Senegal

With the signing of a protocol of intentions for the transfer of anti-retroviral technology, ...

Brazilians Who Use Slave Labor Will Have Land Expropriated

For the first time in the Brazil’s history, workers rescued from slave labor conditions ...

Brazil Cuts Budget to the Bone

The Brazilian Ministry of Planning has just revised its estimates for GDP growth for ...

Brazilian Pharmacies Will Finally Be Able to Fill Doctor’s Prescriptions

Beginning next year, Brazilian consumers will be able to enter the pharmacy and buy ...

National Geographic Film Festival Offers Brazilian Treat

This year’s National Geographic All Roads Film Festival will feature two movies from Brazil, ...

SOCCER IS CULTURE

Among the most devoted soccer fans are Brazilian artists. Some of Brazil’s best writers, ...

Jamba Juice Creates Power Breakfast with Brazilian Açaí­ and Guaraní¡

Jamba Juice, a company specialized in freshly blended-to-order fruit smoothies and juices, has just ...