Shearman & Sterling is advising long-time client Bunge Limited in connection with the sale of its Brazilian fertilizer business, including blending facilities, brands and warehouses, for $750 million in cash to Yara International ASA.
The transaction, which is expected to close in the second half of 2013, is subject to customary closing conditions, including the receipt of regulatory approvals in Brazil. The purchase price is subject to certain post-closing adjustments.
Bunge and Yara have also agreed to enter into a long-term fertilizer supply agreement, enabling Bunge to continue to supply fertilizer to farmers as part of its grain origination activities and creating a framework for logistics and other commercial activities related to fertilizer sales. Bunge will retain and continue to operate its fertilizer terminal in the Port of Santos, Brazil.
Bunge Limited is a leading global agribusiness and food company operating in over 40 countries with approximately 35,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in North and South America. Founded in 1818, the company is headquartered in White Plains, New York.
Yara delivers solutions for sustainable agriculture and the environment. The company’s fertilizers and crop nutrition programs help produce the food required for the growing world population, and its industrial products and solutions reduce emissions, improve air quality and support safe and efficient operations. Founded in Norway in 1905, Yara has a worldwide presence with sales to 150 countries.
Shearman & Sterling’s team included partner Clare O’Brien and associate Tania Mattei (both New York-Mergers & Acquisitions). Souza, Ceson, Barrieu e Flesch Advogados advised Bunge on Brazilian law matters.