The Sale of Fruitfulfrom YPF to the consortium consisting of Adecoagro and the Association of Argentine Cooperatives (ACA) A lot of fabric has to be cut.
Adeco and ACA had already bought 50% of the Canadian company Agrium, which had decided to withdraw from Profértil as part of an internal restructuring process. The news shocked the market. And the surprise came, just two weeks ago they made an irrevocable offer to acquire the remaining 50% in the hands of YPF in order to keep 100% of the company. Now It will come from 90% Adecoagro and 10% from ACA.
The entire operation will take time 1.2 billion dollars. It’s an impressive number. It should be recalled that Adecoagro is listed on the Nasdaq under the “ticker” (acronym). AGRO. That is, Agro on Wall Street is an Argentine agribusiness company that became a business in just 20 years global reference in food and bioenergy production. So much so that it piqued the interest of Connectionthe largest cryptocurrency operator in the world. Looking for Bring the immense amount of money moving with USDT down to earthdecided to invest in this company, with the addition of acquisition Thousands of hectares and industrial facilities in Argentina, Brazil and UruguayYou see enormous synergies. For example, the use of renewable sources for cryptocurrency mining, which requires huge sources of energy.
The participation of HERE It is extremely relevant. Essentially provides a distribution network for urea from Profertil. ACA is a major player in the fertilizer market and collaborates with Bunge on various industrial and logistics activities. It is a “second degree” unit that integrates More than 60 cooperatives are spread across the entire productive interior of the country with more than 50,000 affiliated producers.
Profertile is sublimating gas in the form of granulated urea. This takes place at the Bahía Blanca petrochemical center. Side note: There is also the largest manufacturer of Polyethylene of the country. The largest destination for polyethylene today is the manufacturing of Silo bags. In other words, Industrial gas derivatives ultimately serve as input for agricultural production. Agriculture Create added value to gas. Also oil converted into diesel and even asphalt. The routes are consumed by taking the field to the port. Truck and van tires are also petrochemical derivatives.
The issue of fertilizers is crucial for Argentina and the entire agricultural world. More than half of world production is the result of this invention by the Germans Haber and Bosch. since the beginning of the 20th century, when they achieved it synthesize ammonia (precursor of urea) from natural gas. Of course, those who had gas found a fantastic deal. Among other things, Russia, which became an indispensable global supplier.
But Russia is in trouble. Last week, Ukrainian drones carried out a major attack on several chemical plants near Veliky Novgorod. Ukrainian Unmanned Forces Commander Robert Brovdi said in a Facebook post that the drones attacked the Acron and Dorogobuzh plants, which produce nitric acid, ammonia and other precursors for making explosives.
This led to one Immediate rise in stock prices of major global fertilizer companies: Mosaic, 6.8%, CFIndustries 3.9; Nutrien 4.3%, FMC 5% and Corteva 2.4%. This was investors’ response to concerns about possible disruptions to fertilizer supplies if the damage to Russian production capacity were to prove significant.
With the abundant reserves of Dead cowProfertil’s future can be nothing other than growth. Is one of the largest shale gas reserves in the worldand everything indicates that to the extent that the Argentine macroeconomy is organized, the necessary investments will flow to define the infrastructure necessary to deliver the gas to its destination. The most plausible option is to export it with added valueand there is Profértil, where they have been based for a long time installed capacity expansion projects.
And it is even more plausible to allocate a larger amount of it urea on the domestic marketWhere We are still a long way from replenishing the nutrients that disappear each year with the harvest.. It is not just nitrogen, which is fortunately present in the air, but just a matter of depositing it in the soil in the form of urea. But if we have one this year We have a record harvest of almost 28 million tons of wheat thanks to nitrogen. The one from Profertil, the one from Bunge and the imported one. The one that becomes grains, and then too Meat, dairy, chicken, pork and eggs. A value cascade that is now being expanded with this investment from Adecoagro and ACA.
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