Global agribusiness giant Bunge has reached an agreement to acquire a 33% stake in leading Brazilian grain and agricultural product wholesale company Sinagro Produtos Agropecuarios (Sinagro).
A subsidiary of Mumbai-based agrochemical firm UPL, Sinagro has a network of more than 30 stores and warehouses, and operates in seven Brazilian states – Mato Grosso, Mato Grosso do Sul, Goiás, Bahia, Tocantins, Pará, and Minas Gerais – with a significant presence in the country’s Cerrado savannah region.
The financial terms of the transaction, which is subject to regulatory approval, were not disclosed in a 20 January statement by Sinagro.
Bunge, which sources, processes and supplies oilseed and grain products and ingredients globally, expects to use its investment in Sinagro to strengthen its grain strategy in Brazil, according to the statement.
Last year, Sinagro became one of the first companies to join Bunge’s Sustainable Partnership, an initiative to help grain re-sellers set up socio-environmental assessment systems for suppliers at the farm level. The programme allows participants to adopt independent geospatial imaging services or have free access to Bunge’s structure.
“This transaction will contribute to Bunge’s grain origination capabilities and to its access to producers in the region,” Bunge agribusiness vice president Rossario de Angelis Junior said. “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.”
Sinagro president Renato Guimaraes said Bunge’s expertise in risk management and its logistics capacity would help the company maximise opportunities in the grain market.
A global provider of agricultural products, UPL’s portfolio includes biological and traditional crop protection solutions and the company is active in more than 130 countries.