Bunge to acquire 33% in UPL backed Sinagro

20 Jan 2022 , 02:36 PM

UPL Ltd announced that its associate company Sinagro Produtos Agropecuarios SA., Brazil has entered into an agreement with Bunge Ltd., under which the latter shall acquire a 33% stake in Sinagro to strengthen its grain orientation strategy in Brazil. The deal announced is yet to receive a green signal from Brazil’s antitrust body, Conselho Administrativo de Defesa Econômica (‘CADE’).

Sinagro’s strategic focus has been supporting producers for more than 20 years. Sinagro has strategically positioned itself to support suppliers and final customers alike by setting up a network of more than 30 stores and warehouses, and a footprint across seven Brazilian states.

With this deal, the company further strengthen its partnership with Bunge in a relationship that will generate benefits to both organizations. Bunge’s expertise in risk management and its logistics capacity will magnify Sinagro’s opportunities in the grain market, while the company remains committed to sustainable, traceable, and verifiable production in the Brazilian Cerrado, stated Renato Guimaraes, President of Sinagro.

Sinagro is a major player reselling grains and agricultural products with its presence in Brazil’s ‘Cerrado’ savanna region. While Bunge is a world-class leader in processing, sourcing, and supplying grain products, oilseed and ingredients.

“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,” says Rossano de Angelis Junior, Bunge´s Agribusiness VP.

Bunge helps grain resellers set up socioenvironmental assessment systems for suppliers — including satellite monitoring — at the farm level, Sinagro being one of the first signatory companies to join the “Sustainable Partnership” initiative launched by Bunge in 2021.

UPL Ltd is currently trading at Rs804.55 down by Rs8.3 or 1.02% from its previous closing of Rs812.85 on the BSE.

The scrip opened at Rs823.75 and has touched a intraday high and low of Rs823.75 and Rs804.50 respectively.