Bunge Said to Be in Talks to Buy Stake in Brazil Trader Fiagrilby
Acquisition would be Bunge's second in three months in Brazil
Fiagril trades and processes soybeans, owns biodiesel plant
Bunge Ltd., the world’s largest oilseed processor, is in advanced talks to purchase a stake in Brazilian soybean trader and processor Fiagril Ltda., a person with direct knowledge of the matter said.
A deal may be closed in the next few days, although there’s no guarantee that an agreement will be reached, said the person, who asked not to be identified as the negotiations are confidential. White Plains, New York-based Bunge is negotiating the acquisition of a 40 percent stake in closely held Fiagril, newspaper Valor Economico reported Friday, without saying where it got the information.
A Bunge spokeswoman said the company doesn’t comment on “market rumors.” Spokesmen for Fiagril didn’t immediately respond to messages seeking comment.
Buying a stake in Fiagril would be Bunge’s second acquisition in Brazil in three months. The company said in August it agreed to purchase wheat mill Moinho Pacifico Industria e Comercio Ltda. for an undisclosed price. The deal was approved by Brazil’s antitrust regulator in September.
Fiagril, which was founded in 1989, moves about 2.5 million tons of soybeans and corn a year and has a storage capacity of 700,000 tons, according to the Lucas do Rio Verde, Matto Grosso-based company’s website. The company also owns a biodiesel plant with capacity to produce 200 million liters (53 million gallons) a year and has a stake in a navigation company with terminals in the Amazon region.