Tuesday, May 21, 2013
Bunge Yara merger green light
Cade approves purchase of fertilizer assets of Bunge by Yara
By Thiago Resende | Value
BRASILIA - CADE approved without restrictions, the business in which the Norwegian fertilizer company Yara International intends to acquire Brazilian fertilizer assets of American Bunge.
Announced in December last year, the operation is estimated at $ 750 million. The purchase involves "virtually all assets related to the fertilizer business of Bunge in Brazil, consisting of mixing units located in 22 locations throughout Brazil", 16 owned and six leased, according to information sent by the businesses to Cade. Additionally, other assets such as a phosphate factory will also be acquired by Yara.
"The only asset used in the fertilizer business by Bunge Group that will not be transferred to Yara's Termag, a port terminal used for fertilizer in the port of Santos," companies completed to notify the transaction to the national antitrust.
Yara The group primarily operates in the production and sale of fertilizers, and sale of ammonia. Thus, companies recognize the business generates a higher concentration by the Norwegian market, but without "cause any competitive concern, in view of the "high rivalry" in the industry.
The process was analyzed by the new law antitrust and now, with the endorsement of Cade, companies can perform the operation. The green light was given by order of the Superintendent-General of the agency published today in the "Official Gazette" and therefore the case does not need to undergo trial in plenary Cade.