Brazil approves Yara to acquire Bunge fertilizer business
The Brazilian Administrative Council for Economic Defence (CADE) has approved Yara's acquisition of Bunge's fertilizer business in Brazil, allowing Yara to proceed with completing the $750 million transaction and integration process.
"This regulatory approval marks the start of an exciting new phase in Brazil for Yara. Brazil has significant growth prospects for both the agricultural sector in general and the fertilizer industry, and Yara intends to play a key role in the further development of Brazilian agribusiness," said Jørgen Ole Haslestad, president and chief executive officer in Yara International.
The transaction is valued at $750 million and comprises a net operating capital value of $385 million and other assets valued at $365 million, with the operating capital value subject to post-closing adjustment. Yara is targeting $50 million annual synergies from 2014.
CADE's unrestricted approval of the acquisition was announced on May 16, with a subsequent 15 day filing period for possible objections, which has now expired without any such objections announced by CADE. Closing of the acquisition is expected to take place during third quarter 2013, with the acquired business consolidated into Yara International ASA fourth-quarter 2013 results. The transaction will be financed from the existing cash balance of Yara International ASA.
- Northern corn leaf blight seen across Corn Belt
- EU wheat exporters to benefit from Black Sea turmoil
- Seeds keep vital much longer when stored without oxygen
- Global food safety agreement signed by China and UC Davis
- Weyerhaeuser and DuPont Pioneer sign license agreement
- Corn conditions dip slightly, but…