| CHICAGO, Sept 5
CHICAGO, Sept 5 Bunge Ltd said on
Thursday it was selling its stake in a Moroccan fertilizer
company, less than a month after finalizing the sale of its
Brazilian fertilizer operations.
Bunge is selling its 50 percent stake in Bunge Maroc
Phosphore S.A. to OCP Group, which already owns half the
company. The joint venture was formed in 2008 to produce
fertilizer in Morocco and serve as a source of nutrients for
Bunge fertilizer businesses in South America.
Bunge said in a statement the deal is expected to close by
the end of 2013. Company spokesman Stewart Lindsay declined to
disclose the terms.
Bunge is one of the four "ABCD" companies that dominate the
flow of agricultural goods around the world. The others are
Archer Daniels Midland Co, Cargill Inc and Louis Dreyfus Corp.
In 2007, Bunge said it and OCP would finance the Moroccan
joint venture with an estimated $350 million in debt and equity
over three years. At the time, Bunge estimated its equity
investment at $57 million.
Last month, Bunge said it had completed the sale of its
Brazilian fertilizer operations to Yara International
for $750 million. Through an agreement with Yara, Bunge
continues to supply fertilizer to farmers in Brazil. Bunge also
operates a fertilizer terminal in Brazil, and manufactures and
sells fertilizer in Argentina.
Chief Executive Soren Schroder, who took the helm on June 1,
said the Moroccan deal "makes strategic sense" following the
sale of Bunge's Brazilian business.
In July, Schroder said he was unsatisfied with the company's
financial performance and that he would reduce capital
expenditures and postpone projects to boost results.