Bunge Sells Brazilian Mining Assets

NEW YORK - Jan 27/10 - SNS -- Bunge Limited has entered into a definitive agreement to sell its fertilizer nutrients assets in Brazil, including its interest in Fertilizantes Fosfatados S.A. (Fosfertil), to Vale S.A. for $3.8 billion in cash. Net proceeds after taxes, transaction fees and expenses will be approximately $3.5 billion.

Under the terms of the agreement, Vale will acquire Bunge's 42.3% interest in Fosfertil, as well as Bunge's wholly owned phosphate mines and related production facilities in Brazil. The total annual phosphate rock production capacity of Bunge's nutrients assets and its share of Fosfertil is approximately 3 million tons.

Bunge will retain its retail fertilizer operations in Brazil and will enter into a supply agreement with Vale through 2012, with an option to extend it for one additional year. Bunge will also retain its fertilizer operations in Argentina and the United States, and its 50% stake in its joint venture with Office Cherifien des Phosphates in Morocco.

The transaction, which is subject to customary closing conditions, including the receipt of governmental approvals relating to certain mining concessions, is anticipated to close in the second quarter of 2010.