Sumitomo Corporation Acquires 65% Stake in Agro Amazonia

Sumitomo Corporation and Agro Amazonia Produtos Agropecuarios Ltda announced their agreement to have Sumitomo acquire a 65 percent share of Agro Amazonia, a distributor of farm and livestock supply (i.e. agrochemicals, fertilizers, seeds, veterinary products, wires, and more) located in the State of Mato Grosso, the largest granary and producer of soybean, cotton, maize, sunflower and beef cattle in Brasil.

This investment gives Sumitomo an entry point for multifaceted distribution of products and services offered to farmers in the Brazilian agribusiness.  This deal also represents the first full-scale investment of its kind in the State of Mato Grosso, by a Japanese company.

"We are pleased to partner with such a leading company like Agro Amazonia," said Shoichiro Oka, President, Sumitomo Corporation do Brasil. "Together we aim to build a sustainable agribusiness model that mutually generates profits and environmental preservation, and helps increase agricultural and livestock production in the company's operating regions, through unique services and a complete portfolio of products for farmers and ranchers who are contributing to the stable supply of food in the world."

Luiz Piccinin, President, Agro Amazonia says, "From the beginning of our activities we conduct business guided by integrity and transparency, and we have consolidated in Agro Amazonia, a management model focused on sustainability. The market has grown, and it will continue to grow, so we follow this locomotive called agribusiness and continue serving our customers and suppliers, always delivering the best experience. We felt we needed to take a new leap forward, and we found an ideal partner in Sumitomo, because in addition to their financial capacity, their philosophy is very similar to ours. Their plans for the future are to meet our strategic long-term objectives and they share the same trust that we have in the strength that agribusiness has to feed the world."

According to Roberto Motta, Commercial Director, Agro Amazonia, "In this model, Sumitomo, through its ability to provide finance sourcing and solutions, intends to expand its business by creating synergies. This business model also provides opportunities to increase their participation in their customers' business chain, providing in addition to agricultural supplies, other products that may contribute to the success of farmers, such as commercialization of grain."