CHICAGO Feb 27 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.