Mumbai : UPL Ltd. and other shareholders in Sinagro Produtos Agropecuarios SA., Brazil, (Sinagro) have announced an agreement in which Bunge Ltd. (Bunge) will acquire a 33% stake in Sinagro to strengthen its grain orientation strategy in Brazil.
Sinagro is a major reseller of grains and agricultural products with a significant presence in Brazil’s ‘Cerrado’ savanna region. Bunge is one of the world leaders in sourcing, processing, and supplying oilseed and grain products and ingredients. The deal announced today is subject to approval by Brazil’s antitrust body, Conselho Administrativo de Defesa Econômica (‘CADE’).
For more than 20 years Sinagro’s strategic focus has been supporting producers, and with a network of more than 30 stores and warehouses, and a footprint across seven Brazilian states (Mato Grosso, Mato Grosso do Sul, Goiás, Bahia, Tocantins, Pará, and Minas Gerais), Sinagro is strategically positioned to support suppliers and final customers alike. Sinagro was one of the first signatory companies to join Bunge’s “Sustainable Partnership” a groundbreaking initiative, launched in 2021, whereby Bunge helps grain resellers set up socioenvironmental assessment systems for suppliers – including satellite monitoring – at the farm level. Program participants can adopt independent geospatial imaging services or use Bunge’s structure at no cost.
“UPL is pleased to have this strategic partnership with Bunge and welcomes Bunge’s contribution to Sinagro on several fronts. In addition to Bunge’s origination, logistics, and risk management expertise, which is undeniable, Bunge is a company with an outstanding global reputation and a strong presence in Brazilian agribusiness. Together with UPL, this new partnership will strengthen Sinagro’s bases across the board. This agreement will also accelerate the company’s growth and expansion in Brazil” Rogerio Castro, CEO, UPL do Brasil, said.