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Batista Family Enters The Fertilizer Sector With Purchase Of Potash Mine. Acquisition Of Strategic Asset In Sergipe Strengthens Diversification And May Reduce Dependence On Imports In Brazil
The Batista family has taken another step in diversifying its business by entering the fertilizer sector. VL Mineração, controlled by Valere Batista Mendonça Ramos, sister of Joesley and Wesley Batista, has signed an agreement to buy the Taquari-Vassouras potash mine, in Sergipe, for US$ 27 million (R$ 146 million), the only operational asset of its kind in Brazil. The deal was made with Mosaic, a multinational that owned the mining complex, and still requires approval from Cade to be concluded by the end of the year, according to information from Estadão.
Brazil imports about 90% of the potash used in fertilizer production, which makes the asset highly strategic for food security and agribusiness. For Mosaic, the sale will allow it to redirect resources to areas where the company sees greater potential for return.
Transaction Details And Obligations Assumed
The purchase guarantees VL Mineração full control of Mosaic Potássio Mineração (MPM), responsible for operating the complex. Payment will be made in installments: US$ 12 million upfront, US$ 10 million in one year, and US$ 5 million over six years, the latter linked to the performance of potash prices.
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In addition to the acquisition cost, the buyer will assume US$ 22 million in decommissioning obligations and will need to invest US$ 25 million in capital to maintain operations. The mine, established in the 1980s by Petromisa and later controlled by Vale, has been undergoing a gradual reduction in production and is expected to exhaust its reserves by 2024, having extracted 398 thousand tons of potash.
Strategic Move And History Of Acquisitions
This is the second foray of the Batista family into mining. In 2022, J&F Investimentos, the group’s holding company, purchased iron and manganese assets from Vale in Corumbá (MS). Recently, through Globe Investimentos, it acquired 4.99% of Usiminas, in a deal valued at R$ 263.3 million.
The group, owner of JBS, the world’s largest producer of animal protein, also controls companies like Eldorado Celulose, Banco Original, PicPay, Flora Cosméticos, Âmbar Energia, and LHG Mining. The entry into the fertilizer segment complements its operations in agribusiness and strengthens its presence in strategic economic chains.
Impacts On Brazilian Agribusiness
The purchase of the potash mine may help reduce external dependence on this input, crucial for agricultural production. According to the CEO of VL Holding, Daniel Moreira, the goal is to preserve and expand domestic potash supply, contributing to the competitiveness of national agribusiness. Experts point out that, even in the phase of depletion, the mine can serve as a basis for new projects and extraction technologies.
The Batista family believes that the experience accumulated in logistics and management in the food sector can be replicated to extract value in the mineral sector, at a time when food security and input control are at the center of global strategies.
And you? Do you think the Batista family’s entry into the fertilizer sector can reduce Brazil’s dependence on imported inputs or will it only be another financial move? Leave your opinion in the comments.
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