Bunge to acquire minority stake in Brazil's Pantanal Agricola

U.S. agricultural commodities trader Bunge Ltd intends to acquire a minority stake in Brazilian agriculture supplies distributor Pantanal Agricola, which operates in the country's major midwest grain-producing region, it said on Friday.

Financial details of the potential deal were not disclosed.

Bunge's director in Brazil, Roberto Marcon, said in a statement the move would reinforce the company's barter operations. The U.S. firm also expects to invest in increasing Pantanal Agricola's grain storage capacity.

The closing of the deal is subject to the fulfilment of conditions precedent agreed by the parties, including the approval of the transaction by the Brazilian antitrust authority (the Administrative Council for Economic Defense – CADE). Pantanal Agrícola has been in the market for 20 years. It operates in 64 cities in Mato Grosso do Sul, Mato Grosso and Goiás. It has more than 180 employees and 11 agricultural input stores.

"This combination has great potential to further strengthen our commercial partnership with Bunge and to obtain mutual benefits. Relying on Bunge's expertise in risk management and logistical capacity can maximize our opportunities in the grain market", explains Jonis Asmann, executive director of Pantanal Agrícola.