Adecoagro S.A. (AGRO) said that it has acquired 100% of the common shares of Compania Agroforestal de Servicios y Mandatos S.A for a total price of US$18.0 million. The transaction is subject to anti-trust approval.
Compania Agroforestal de owns a 4,960 hectare farm named "El Colorado", located in the region of Bandera, in the province of Santiago del Estero, Argentina.
Based on initial estimates, El Colorado has approximately 2,411 hectares currently used for planting crops (including soybean, corn, wheat and sunflower) and an additional 1,820 hectares used for cattle grazing activities with potential for crop production.
Adecoagro said that it plans to transform the hectares currently used for cattle grazing and put them into crop production during the 2011/12 harvest season.
Adecoagro expects this acquisition to expand its planted area during the 2011/12 harvest year by approximately 3,000 hectares.
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