MUMBAI, INDIA — Bunge Ltd. has reached an agreement to acquire a 33% stake in Sinagro Produtos Agropecuarios SA, Brazil (Sinagro), a Rio de Janeiro, Brazil-based reseller of grains and agricultural products. Sinagro, which is a subsidiary of Mumbai-based agrochemical firm UPL Ltd., has a network of more than 30 stores and warehouses, and a footprint across seven Brazilian states. Financial terms of the transaction were not disclosed.
Bunge, which sources, processes and supplies oilseed and grain products and ingredients throughout the world, expects to use its investment in Sinagro to strengthen its grain orientation strategy in Brazil. Sinagro in 2021 became one of the first companies to join Bunge’s “Sustainable Partnership,” an initiative designed to help grain resellers set up socio-environmental assessment systems for suppliers at the farm level. Participants in the program can adopt independent geospatial imaging services or use Bunge’s structure at no cost.
“This transaction will contribute to Bunge’s grain origination capabilities and to its access to producers in the region,” said Rossario de Angelis Junior, vice president of agribusiness at Bunge. “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.”
Renato Guimaraes, president of Sinagro, added, “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.”