Agro-chemicals firm UPL buys remaining 27% in Brazilian arm

Agro-chemicals major UPL Ltd, formerly known as United Phosphorus Ltd, has bought the remaining 27 per cent it did not own in UPL do Brasil for an undisclosed amount, it said on Friday.

UPL do Brasil produces, markets, distributes and sells crop protection products and specialities in the Brazilian agro-chemicals market. It has a formulation plant in Brazil and is undergoing expansion.

The Indian firm had acquired a 51 per cent stake in UPL do Brasil, then known as DVA Agro Do Brasil, from Germany's DVA Group and other shareholders for $150 million in 2011 and increased it to 73 per cent in March last year.

This was the second acquisition by the Mumbai-based company in Brazil after it acquired 50 per cent stake in Sipcam Isagro Brasil, a 50:50 Joint venture between Sipcam-Oxon group (Sipcam) and Isagro, in March 2011.

Last year, UPL sold this stake in Sipcam for $58.80 million. It, however, retains its presence in Brazil through the other subsidiary.

"This consolidation will help UPL have a focused approach into the Brazilian crop protection market, the largest and one of the fastest growing crop protection markets in the world," the firm said.

This comes as a parallel transaction for UPL in the Latin American country. On Thursday, UPL inked a deal to acquire a 40 per cent equity stake in another Brazilian firm Sinagro, which is into distribution of farm inputs in Cerrado region of Brazil, for an undisclosed amount.

On Friday, shares of UPL were trading at Rs 419.20 a unit, down 2.02 per cent at 11:30 AM on the BSE in a weak Mumbai market.

(Edited by Joby Puthuparampil Johnson)

Leave Your Comment(s)