Bunge Sells Fertilizer Unit to Vale for $3.8 Billion
January 28, 2010
According to the Associated Press, agribusiness company Bunge is selling its fertilizer nutrient assets in Brazil to the mining giant Vale for $3.8 billion. Vale, which is based in Brazil, is buying Bunge’s 42.3 percent interest in Fertilizantes Fosfatados, Brazil’s largest supplier of fertilizer ingredients. It is also acquiring Bunge’s Brazilian phosphate mines and production facilities. Phosphate is an important ingredient in fertilizer. Bunge will keep its retail fertilizer business in Brazil and enter a supply agreement with Vale through 2012. Proceeds of the sale will help expand Bunge’s food and agribusiness units and pay down debt. Bunge said that selling the phosphate production business would allow it to expand its sugar operations. In December, the company said it would buy a Brazilian sugar and ethanol producer. Bunge also supplies the biofuels industry, which relies on renewable resources like sugar. The deal is subject to regulatory approvals.