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YARA TO ACQUIRE BUNGE'S FERTILIZER BUSINESS IN BRAZIL
Source: Yara Int'l news release

Oslo (2012-12-07): Yara International ASA has entered into an agreement to acquire Bunge's fertilizer business in Brazil, significantly strengthening its fertilizer position in the country.

The proposed transaction is valued at USD $750 million, and will be subject to the approval of Brazilian competition authorities (CADE) and other customary approvals.

Yara and Bunge have also agreed to enter into a long-term fertilizer supply agreement, enabling Bunge to continue supplying fertilizer to farmers as part of its grain origination activities and creating a framework for logistics and other commercial activities.

"I am pleased to announce this important move in Brazil, building further scale for Yara following previous acquisitions in 2000 and 2006. Brazil is a key growth market where there is significant further potential for acreage and yield increases. Today's agreement also creates a strong platform for future growth opportunities within the Brazilian fertilizer industry," said Jørgen Ole Haslestad, President and Chief Executive Officer of Yara.

"Our talks with Bunge to reach this agreement have been conducted in a positive and constructive manner, and we look forward to expanding our cooperation with Bunge in our role as a key input supplier to Brazilian agribusiness," said Jørgen Ole Haslestad.

Bunge operates 22 blending units across Brazil, delivering 4.8 million tons of fertilizer products in 2011, with revenues of USD 2,648 million and an adjusted EBITDA of USD $77 million.

The USD $750 million enterprise value comprises a net operating capital value of USD $385 million and other assets valued at USD $365 million. The operating capital value is subject to post-closing adjustment.

Yara is targeting minimum annual synergies of USD $25 million within the following main categories, fully realized by 2014:

*Supply chain synergies, comprising scale advantages in raw material sourcing and freight and port operations

*Enlarged downstream footprint for distribution of premium products

*Operational and administrative synergies

With this agreement, Yara reinforces its position as a significant fertilizer company in Brazil, with a well-anchored local commitment combined with global leadership in safe and reliable production and the largest fertilizer trade network globally. This positions Yara as a key enabler for competitive fertilizer supply to Brazil and future fertilizer growth opportunities in the country.


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