Mumbai, Jan 20: Agriculture products and solutions provider UPL on Thursday said Bunge will acquire a 33 per cent stake in its step-down wholly-owned Brazilian subsidiary Sinagro to enable the US firm to strengthen its grain orientation strategy in Brazil.
“UPL and other shareholders in Sinagro Produtos Agropecuarios, Brazil, have announced an agreement in which Bunge will acquire a 33 per cent stake in Sinagro to strengthen its grain orientation strategy in Brazil,” the company said in a regulatory filing.
Sinagro is a major reseller of grains and agricultural products with a significant presence in Brazil’s ‘Cerrado’ savanna region, while Bunge, a US headquartered firm, is one of the world leaders in sourcing, processing, and supplying oilseed and grain products and ingredients.
“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,” UPL do Brasil CEO Rogerio Castro said.
For more than 20 years Sinagro’s strategic focus has been supporting producers, and with a network of more than 30 stores and warehouses, and a footprint across seven Brazilian states, including Mato Grosso, Mato Grosso do Sul, Goi?s, Bahia, Tocantins, Par?, and Minas Gerais, the company said.
Sinagro President Renato Guimaraes 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.
Sinagro was one of the first signatory companies to join Bunge’s Sustainable Partnership a groundbreaking initiative, launched in 2021, whereby Bunge helps grain resellers set up socioenvironmental assessment systems for suppliers, including satellite monitoring, at the farm level, the company said.
Commenting on the development, Bunge Agribusiness VP Rossano de Angelis Junior 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.”
The deal announced today is subject to approval by Brazil’s antitrust body, Conselho Administrativo de Defesa Econmica (‘CADE’), the company said. (UNI)
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