UPDATE 2-Norway's Yara buys Brazilian phosphate miner
* Yara to buy stake for $225 mln
* To inject another $165 mln in equity
* Will fund $550 mln of investment through 2019
* Has option to buy the last 40 pct (Adds option to buy rest of the firm, valuation, analysts)
OSLO, Aug 5 (Reuters) - Fertilizer firm Yara agreed to buy a 60 percent stake in Brazilian phosphate miner Galvani Indústria for $390 million, including future equity commitments, further expanding in its key market.
Norway's Yara will pay Brazilian entrepreneur Rodolfo Galvani Jr $225 million for the stake and has committed to injecting $165 million of fresh equity, while also agreeing to spend around $550 million until 2019 on developing the firm's mines.
"The Galvani acquisition will help secure phosphate fertilizer capacity in the centre of the country and in the attractive and fast-growing agri frontiers of Brazil," Yara said in a statement. "This acquisition represents another significant step in realizing our Latin American growth strategy."
Yara spokesman Thor Giaever said the firm also has an option to buy the remaining 40 percent of Galvani, but only after completion of expansion projects, with the option price related to earnings.
The deal comes a year after Yara completed its $750 million acquisition of Bunge's fertilizer business in Brazil, which gave it 22 blending facilities across the country along with some production capacity. Continuación...