Brazil CADE approves the purchase of 33.3% of the share capital of Sinagro by Bunge

The Administrative Council for Economic Defense (CADE) of Brazil published in the Official Gazette (DOU) this Monday (03/07) the approval, without restrictions, of the purchase of a 33.3% equity interest in Sinagro Produtos Agropecuarios SA., Brazil, ('Sinagro') by Bunge Ltd. ('Bunge').

The Bunge Group operates worldwide in the agribusiness, food and bioenergy segments. Sinagro operates in the agribusiness sector, specifically in the distribution of agricultural inputs and in the origination of grains.

According to the companies, the operation is in line with Bunge's growth and consolidation strategy in the agribusiness sector and represents an opportunity to strengthen Sinagro's business, with the entry of a new investor with expertise in the sector.

In its opinion, CADE's General Superintendence pointed out that the operation does not cause harm to the competitive environment, since the joint shares in the markets involved in the operation are not high.

If CADE's Tribunal does not invoke the merger for analysis or there is no appeal by an interested third party, within 15 days, the Superintendence's decision will be final and the transaction will be definitively approved by the antitrust agency.