December 20, 2019 / 10:58 PM / a month ago

Bunge sells margarine business in Brazil to JBS subsidiary

SAO PAULO (Reuters) - Commodities trader and food processor Bunge Ltd said on Friday it agreed to sell its margarine and mayonnaise assets in Brazil to Seara Alimentos, a subsidiary of Brazilian meat processor JBS SA.

JBS said in a separate statement that Seara Alimentos will pay Bunge 700 million reais ($170.64 million) for the assets, which include three plants in Brazil and brands such as Delícia, Primor and Gradina.

“This transaction further streamlines our operations in Brazil around our core capabilities, while providing good value for a solid business,” Bunge’s chief executive, Greg Heckman, said in its statement.

This is the second major deal for Bunge in Brazil this year. In July, the company decided to put all of its sugar and ethanol assets in a venture with oil company BP Plc, in a deal in which it received $775 million.

Seara Alimentos is JBS’s arm for poultry processing and for a large food service business in Brazil. JBS said the deal strengthens Seara’s position in the Brazilian margarine market and in line with the company’s strategy to boost a portfolio of higher-value branded products.

Conclusion of the deal is subject to local regulatory approval.

Reporting by Marcelo Teixeira; Editing by Leslie Adler

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