UPDATE 1-CHS forms sunflower joint venture with Adecoagro
CHICAGO Feb 27 (Reuters) - U.S. farm and refining cooperative CHS Inc and South American agricultural company Adecoagro formed a joint venture to grow and process sunflower kernels, the companies said on Wednesday.
Each company will own 50 percent of the joint venture, which will be called CHS AGRO and based in Argentina, they said in a statement. Financial terms of the deal, part of CHS's strategy to aggressively expand in South America, were not disclosed.
The sunflower products will be marketed and distributed globally by CHS.
CHS has said it planned to more than double its grain and oilseed business in South America in five years. The company closed three big deals in Brazil in 2012, including buying a 25 percent stake in a grains terminal at the Itaqui port and 100 percent of Atman.
The firm also plans to enter Brazil's sugar cane-based ethanol business, focusing on sales and logistics rather than production in the same way it operates in the U.S. corn-based ethanol industry, he said.
Shares of CHS closed up 2 cent at $32.59 on Thursday while Adecoagro stock was 3 cents lower at $8.00.