This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bunge To Sell Brazilian Fertilizer Nutrients Assets To Vale For $3.8 Billion In Cash





WHITE PLAINS, N.Y., Jan. 27 /PRNewswire-FirstCall/ -- Bunge Limited (NYSE: BG) today announced that it has entered into a definitive agreement with Vale S.A. (NYSE: VALE) under which Vale will acquire Bunge's fertilizer nutrients assets in Brazil, including its interest in Fertilizantes Fosfatados S.A. (Fosfertil), for $3.8 billion in cash.  Net proceeds after taxes, transaction fees and expenses will be approximately $3.5 billion.

Under the terms of the agreement, Vale, a Brazil-based global mining company, will acquire Bunge's 42.3% interest in Fosfertil, as well as Bunge's wholly owned phosphate mines and related production facilities in Brazil.  The total annual phosphate rock production capacity of Bunge's nutrients assets and its share of Fosfertil is approximately 3 million tons.  Bunge will retain its retail fertilizer operations in Brazil and will enter into a supply agreement with Vale through 2012, with an option to extend it for one additional year.  Bunge will also retain its fertilizer operations in Argentina and the United States, and its 50% stake in its joint venture with Office Cherifien des Phosphates in Morocco.

Alberto Weisser, Bunge's Chairman and Chief Executive Officer stated, "This transaction is an opportunity to immediately realize the value of these assets at an attractive price.  It allows us to redeploy capital to increase the scale of our global agribusiness and food & ingredients businesses, and to further expand into complementary value chains such as sugar.  We see compelling opportunities for growth by building on our global footprint and leveraging our commercial, logistics and risk management capabilities across a larger product portfolio.  We believe this approach will deliver greater shareholder value over the long-term.  Additionally, Bunge intends to use a portion of the proceeds to reduce outstanding debt.

Weisser continued, "It's an opportune time for Bunge to exit the upstream fertilizer business.  To continue to grow it would have required significant capital that, in the face of uncertain international fertilizer price and local currency environments, we believe is better allocated to other opportunities.  Additionally, large global mining companies are entering the industry and diversifying their portfolios.  We are pleased that this business will join Vale, which shares with Bunge a long-term commitment to Brazil."

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs