Norwegian fertilizer company Yara International AB (YAR.OS) said
Friday it signed a deal to buy a fertilizer business in Brazil from
Bunge Ltd. (BG) for $750 million, significantly strengthening its
position in the country.
Yara said it is targeting annual synergies from the deal of at
least $25 million, fully realized by 2014.
"Brazil is a key growth market where there is significant
further potential for acreage and yield increases," Yara Chief
Executive Jorgen Ole Haslestad said in a statement.
Yara said the deal includes blending facilities, brands and
warehouses, adding that the $750 million enterprise value comprises
a net operating capital value of $385 million and other assets
valued at $365 million.
The two companies have also entered into a long-term fertilizer
supply agreement that allows Bunge to continue supplying fertilizer
to farmers.
The deal is subject to the approval of Brazilian competition
authorities and other customary approvals.
Yara's shares closed Thursday at NOK 280.50.
Write to Katarina Gustafsson at
katarina.gustafsson@dowjones.com; Twitter: @DowJonesNordics
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