Bunge Ltd. has signed a Memorandum of Understanding to buy a minority stake in Brazilian agricultural retailer Pantanal Agricola, according to Bloomberg, citing a company statement. The transaction will allow Bunge to intensify barter trading in the Center-West region, where Pantanal operates. Bunge also plans to invest in Pantanal’s grain storage capacity and boost its potential growth.
Pantanal Agricola, in business since 2001, operates in three states – Mato Grosso, Mato Grosso do Sul, and Goias – and 32 cities, selling fertilizer, seed, and crop protection products, according to its website. Product partners include Bayer, Corteva AgriScience, FMC, Nufarm, Helm, and STK Bio-Ag Technologies.
Terms of the deal were not disclosed. The deal still needs approval from Brazil’s antitrust regulator, the Administrative Council for Economic Defense (CADE).