Brazil’s Economic Defense Administrative Council (Cade) approved without restrictions the purchase of 30% of the social capital of Foco Agronegócios by Adama Brasil S.A. Located in the Tocantins, the acquired company is a wholesaler of agricultural pesticides, involved also in the commercialization of grains and oilseeds, fertilizers and wheat, among other activities, with a focus on soybean and corn seeds.
Financial terms of the transaction were not disclosed. The Cade approval was published in the Official Union Gazette on July 18, 2018. Within the terms of the negotiation, it was mentioned that the exclusiveness of distribution of its product would not be required. According to Foco Agronegócios, the strategy was “to grow together and in a sustainable way”.
“Aligned with the proposal of creating simplicity in agriculture and detaining one of the most ample portfolios in the market, Adama has, with this, moved toward its goal of extending to the distributor its know-how and expertise in business management to offer the producer a vast platform of its products and services, thus improving the results in the field,” said Adama, after starting the purchase procedure in April this year.
“Our strategic decision was to create and assure a long-term partnership, retaining the owners of Foco Agronegócios at the front of our business management, because nobody understands the dynamics of the regions and the customer relationship better than them,” said Rodrigo Gutierrez, CEO of Adama Brasil.
“In the last five years, Foco Agro has been growing and expanding its performance, working with inputs, grains and the industry," said Augusto César Ribeiro, owner of Foco.
"This moment is very unique, uniting with a strong partner that will contribute to the growth and company consolidation,” said Márcio Takatsu, the other owner of Foco.