UPL, formerly United Phosphorus Ltd, has acquired the remaining 27 per cent stake that it did not own in the Brazilian joint venture subsidiary company UPL do Brasil. The deal was executed through its step-down wholly-owned subsidiary for an undisclosed amount on Friday.
UPL do Brasil produces, markets, distributes and sells crop protection products and specialities in the Brazilian agro-chemicals market.
It has a formulation plant in Brazil and is undergoing expansion. The announcement of the deal comes a day after UPL agreed to subscribe to 40 per cent equity in another Brazilian company Sinagro Group, a leading distributor of farm inputs in the Cerrado region of Brazil.
The deals will further consolidate UPL interest in Brazil which is one of the largest producers of many agriculture commodities, including sugar, soybean and coffee.
In 2011, UPL acquired 51 per cent stake in DVA Agro Do Brasil (now UPL do Brasil) from Germany’s DVA Group and other shareholders for $150 million. It increased the stake to 73 per cent in March last year.
The consolidation of stake in UPL do Brasil will help UPL focus on the Brazilian crop protection market, the largest and one of the fastest-growing in the world, said UPL in a statement.
On Friday, the shares of UPL were down three per cent at ₹417.