Announcement to the Market - Itaú purchases minority interest in Orbia to expand operations in agribusiness

Rhea-AI Summary

Itaú Unibanco Holding S.A. has announced an investment to acquire 12.82% of Rede Agro Fidelidade e Intermediação S.A. (Orbia) through its subsidiaries. This platform, launched in 2019, is Brazil's largest agribusiness marketplace, facilitating a full digital journey for rural producers. Orbia reported R$902 million in sales for 2021 and expects to reach R$3 billion in 2022. The investment aims to enhance credit access for Orbia's customers, with the deal pending approval from Brazilian regulatory bodies.

Positive

• Acquisition of 12.82% stake in Orbia, enhancing Itaú's presence in agribusiness.
• Orbia projected to grow sales from R$902 million in 2021 to R$3 billion in 2022.

Negative

• None.

SÃO PAULO, April 18, 2022 /PRNewswire/ -- Itaú Unibanco Holding S.A. announces to its stockholders and the market in general that by way of its subsidiaries, it has entered into an Investment Agreement and Other Covenants to purchase, through financial contribution, 12.82% of Rede Agro Fidelidade e Intermediação S.A. ("Orbia's") total capital, in which Bayer S.A., Yara Brazil Fertilizantes S.A. and Bravium Comércio Ltda. already hold corporate interest.

Orbia is a platform providing rural producers with a full digital journey, facilitating operations in this segment, ranging from planting to marketing of commodities. It is currently the largest agribusiness marketplace in Brazil, notably when it comes to inputs and other agricultural services. Launched in the end of 2019, Orbia recorded over R$200 million in sales in the first year of operation to reach R$902 million in 2021, just the following year. For 2022, growth is expected to reach R$3 billion in sales.

This operation will enable Itaú to provide Orbia's customer base with more effective credit access solutions. On the other hand, Orbia will increase its market share in agribusiness, reaching a new level in terms of credit access to rural producers.

By connecting different products and services in one and the same platform easily accessible by rural producers, Orbia provides an environment that eases the way its customers and partners do business.

The four companies that will constitute Orbia will sit on the Board of Directors, which will operate on an independent basis.

The completion of this operation is subject to approval from the Brazilian antitrust agency (CADE) and the Central Bank of Brazil (BACEN).

São Paulo (SP), April 18, 2022. 
RENATO LULIA JACOB 
Group Head of Investor Relations and Market Intelligence

 

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SOURCE Itaú Unibanco Holding S.A.

FAQ

What percentage of Orbia is Itaú Unibanco acquiring?

Itaú Unibanco is acquiring 12.82% of Rede Agro Fidelidade e Intermediação S.A. (Orbia).

What is Orbia's sales growth projection for 2022?

Orbia expects to reach R$3 billion in sales for 2022.

When was Orbia launched?

Orbia was launched at the end of 2019.

What is the significance of Itaú's investment in Orbia?

The investment will enhance credit access solutions for Orbia's customer base.

What regulatory approvals are needed for Itaú's investment?

The investment is subject to approval from the Brazilian antitrust agency (CADE) and the Central Bank of Brazil (BACEN).