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.
- Scout for aphids in winter wheat
- El Niño development stalled out, but wet winter still predicted
- Ag markets posted divergent closes Wednesday
- Farm bill program to help farmers affected by severe weather
- Israel panel proposes 25-42% tax hike on mining companies
- Ag markets moved almost unanimously higher Wednesday morning
- How much corn can the ethanol industry use?
- Economist: Taxing P could reduce risk of algal blooms
- Commentary: Government wants farmers to quit farming
- Source shows half of GMO research is independent
- Ag markets made a generally mixed showing Thursday night
- What is the relationship between maturity group, yield?