UPL Ltd. (NSE: UPL, BSE: 512070, LSE GDR: UPLL) ('UPL'), 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.
Rogerio Castro, CEO, UPL do Brasil, said: "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."
Renato Guimaraes, President of Sinagro, said: "With this deal, we further strengthen our partnership with Bunge in a relationship that will generate mutual benefits. On our side, Bunge's expertise in risk management and its logistics capacity maximizes our opportunities in the grain market, while we are aligned on sustainable, traceable, and verifiable production in the Brazilian Cerrado."
Rossano de Angelis Junior, Agribusiness VP, Bunge Ltd., said: "This transaction will contribute to Bunge´s grain origination capabilities and to its access to producers in the region. In addition, Sinagro and Bunge are closely aligned on their global vision of being the preferred partner in sustainable solutions for oilseeds, commodities, and related ingredients, both for farmers and end customers," says Rossano de Angelis Junior, Bunge´s Agribusiness VP.
Shares of UPL Limited was last trading in BSE at Rs. 812.85 as compared to the previous close of Rs. 799.05. The total number of shares traded during the day was 69269 in over 2560 trades.
The stock hit an intraday high of Rs. 814.75 and intraday low of 790.00. The net turnover during the day was Rs. 55811520.00.