Agro-chemicals major UPL Ltd, formerly known as United Phosphorus Ltd, has agreed to acquire a 40 per cent equity stake in Brazilian firm Sinagro group, which is into distribution of farm inputs in Cerrado region of Brazil, for an undisclosed amount, according to a press statement.
As per the agreement signed by UPL and Sinagro Produtos Agropecuarios SA (Sinagro), UPL through its step-down wholly-owned subsidiary will be subscribing to 40 per cent shares in Sinagro group.
The transaction is, however, subject to necessary approvals.
"This partnership will open up opportunities to UPL to participate in the multifaceted distribution system of products and services in delivering completed crop solutions to Brazilian farmers," UPL said in the statement.
Mumbai-based UPL is one of the largest agro-chemical companies in the country and is engaged in research, manufacturing, marketing, sales and distribution of agri-chemicals and specialty chemicals across the globe.
For the financial year ended March 31, 2015, UPL registered revenues of Rs 10,902 crore.
Last year, UPL sold its entire 50 per cent stake holding in the Brazilian agrochemical company Sipcam UPL Brasil SA for $58.80 million (Rs 351 crore). It, however, retains its presence in Brazil through another subsidiary.
Prior to the stake sale in Sipcam, it had increased its shareholding in Brazilian firm UPL do Brasil from 51 per cent to 73 per cent. Earlier in 2011, UPL 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.
On Thursday, shares of UPL closed the day at Rs 427.85 a unit, up 1.30 per cent from its previous close on the BSE in a weak Mumbai market.
(Edited by Joby Puthuparampil Johnson)