b'We believe that with the synergy between Agro Amaznia and Nativa, including the strengths of each company, we will have the best portfolio of products and services in the market, thus presenting a great competitive advantage when compared to our competitors.M&As, and the whole process was possible thanks toexpanded its value chain by acquiring agricultural teamwork between Agro Amaznia, Sumitomo andsupplies distributors. In the fertilizer field, since starting the third-party organizations hired to help evaluate &the fertilizer raw material import/export business in conduct due diligence of Nativa. With that coopera- the 1950s, Sumitomo has built an integrated business tion, it was possible to conduct the enterprise valua- base from importing fertilizer raw materials to manu-tion, our negotiation and the final proposal. facturers and selling direct to farmers, mainly in Japan As part of Sumitomos commitment to contribute toand the Asia-Oceania region.society, the company continues to support stable andBut why is now the best time for this acquisition? Past sustainable food production and the development ofcollaboration with Sumitomo support paved the way local communities and industries around the world.for more of everything, according to Manabu Asakawa, Sumitomo is intent on providing products and servicesDeputy Department Head, SC Brazil Chemical & that meet the agricultural needs of each country andAgriculture Department. region, while utilizing its expertise in the agriculturalI personally think that our trust of Agro Amaznia materials field for business expansion. Likewise, Agromanagement, who have executed this acquisition Amaznia contributes to the sustainable developmentthanks to the past collaboration and success between of agriculture through the expansion of its productus, makes this possible, Asakawa said. At the same and service portfolio. It has grown its customer basetime, the time to act is now, because Im sure thatto approximately 20,000 households, mainly consist- Nativa would be acquired in the next five yearsing of livestock farmers and large-scale soybean andby someone else if we didnt move forward. After corn farmers with 1,000 to 10,000 hectares or more.Sumitomo entered the Brazilian agrochemical re-The company is emerging as an industry leader intail market, many competitors have been acquiring Brazil, with sales expanding more than five-fold sinceagri-input retail companies, so I can definitely say that 2015. With this acquisition, Sumitomo Corporationnow is good timing for us.aims to expand the operations sales territory in Brazil and achieve further business growth by linking AgroCompared to Mato Grosso and nearer states, the Amaznias extensive product portfolio based on itsMinas Gerais (MG) area has varying crops and farmers strong relationships with agrochemical suppliers withenvironments are much different from our current Nativas fertilizer development and manufacturingAgro Amaznia areas, said Asakawa of the reasoning capabilities and new customer segments.behind the acquisition. Nativas know-how will help From a global strategy perspective, Sumitomo Cor- us expand the business in MG states, as an agri-input poration has positioned agriculture as one of itssupplier with strong branded items like soybean seed next-generation growth fields and Agricultural Inputwhich were developed between Agro Amaznia and & Service as a steady business growth category. In thetop soybean seed suppliers. We can also expand using agrochemicals field, Sumitomo Corporation startedour integrated corporate strength through financial its agrochemical export business in the 1970s andand administrative advantages. We now have more currently operates an import and wholesale businesspeople who know the market, and that is always the in 37 countries overseas. In Europe, the company haskey to success for the next investment or business development initiative.Sumitomo Corporation of Americas 11'