By Brazil Stock Guide – Adecoagro (NYSE:AGRO) acquisition is set to reshape Argentina’s fertilizer market, acording to IstoÉ Dinheiro. The company announced an agreement to buy Nutrien’s (NYSE:NTR) 50% stake in Profertil, South America’s largest granular urea producer, in a transaction valued at about $600 million (R$ 3.3 billion).
The remaining 50% is held by YPF (BCBA:YPFD), Argentina’s biggest oil and gas producer, which has a 90-day right of first refusal to match the offer.
The deal will be executed through a joint venture between Adecoagro and Asociación de Cooperativas Argentinas (ACA), with the latter holding 20% of the acquired shares. Profertil accounts for about 60% of Argentina’s urea consumption and operates with a production capacity of 1.3 million tons of urea and 790,000 tons of ammonia annually.
Located in Bahía Blanca, Argentina’s main petrochemical hub, Profertil benefits from access to competitively priced natural gas and electricity. The company also earns fully dollarized revenue thanks to the export nature of its business. Between 2020 and 2024, Profertil generated an average annual EBITDA of roughly $390 million (R$ 2.1 billion).
“This transaction represents a strategic opportunity for Adecoagro,” said Mariano Bosch, co-founder and CEO of Adecoagro. “Profertil is one of Argentina’s best companies, strategically located with access to competitive gas supply, in a region that is a net importer of urea. At Adecoagro, we have always focused on being the lowest-cost producer, and Profertil shares that philosophy.”
The acquisition is expected to close by the end of 2025, subject to customary regulatory approvals. Rabobank is acting as exclusive financial advisor to Adecoagro and ACA.