The General-Superintendence of the Brazilian Administrative Council for Economic Defence (SG-CADE) approved the deal without restrictions, according to an Aug. 8 press release from the agency.
Bunge and UPL are global leaders in agribusiness, food and fertilizer. The Orígeo joint company will be created to develop agricultural resources, as well as to offer financing alternatives and provide technical assistance and digital solutions to rural producers in some Brazilian states.
Bunge operates in the agribusiness and food sectors, especially in grain production, processing and marketing of agricultural products, as well as industrial production of loose or packaged grains, oilseeds, food and port services.
UPL is an Indian group with a global presence in crop protection products, intermediates, specialty chemicals and other industrial chemicals, including insecticides, fungicides, herbicides and growth regulators.
Orígeo will offer seeds, pesticides and fertilizers; crop-planning assistance; agronomical advice; consulting on sustainability and regenerative and low carbon agriculture certification. The company will also be able to provide agricultural financing solutions, harvest marketing and logistics services. In addition, Orígeo will offer digital agriculture services to farmers, including real-time information, recommendations and alerts using satellite-collected field data to improve decision-making and business efficiency.
According to a notice filed by the companies with CADE, the deal will make it easier to supply various products and services to rural producers by centralizing them in one company. This is an opportunity for both companies to become more efficient to drive innovation in customer service and expand direct-to-consumer sales.
The General-Superintendence of CADR analyzed the markets for agricultural input distribution and commercialization, grain origination, soybean derivatives, and agricultural grain production and storage. The Authority concluded that the transaction would not harm the competitive environment, given the companies' low market shares, and recommended approval of the joint venture without restrictions.
Unless the CADE Tribunal returns the concentration acts for review or an appeal from interested third parties is filed within 15 days, the transaction will be finally approved by the antitrust authority.