SLC Agricola Shares Rally as Radar Land Deal Shrinks by 64%

Brazilian agricultural giant SLC Agricola (SLCE3) has successfully renegotiated the terms of its high-profile land acquisition from Radar, a joint venture between Cosan (CSAN3) and Nuveen. Under the newly restructured agreement, SLC Agricola will slash its cash acquisition outlay by 64%, reducing the transaction price tag from an initial R$ 1.85 billion to R$ 669 million.

The market welcomed the dramatic reduction in financial risk, sending SLC Agricola shares up approximately 3.3% following the announcement. The broader Brazilian market also traded in positive territory, with the benchmark Ibovespa (IBOV) rising 1.22% to 172,742.12. Among other major assets, Petrobras (PETR4) slipped 1.11% to 39.21, Vale (VALE3) gained 0.62% to 73.15, and Itau Unibanco (ITUB4) climbed 1.67% to 42.59.

The revised deal represents a consensual split of the "Bloco Mato Grosso" land portfolio. Instead of purchasing the entire 28.8k hectares of arable land as originally planned under its preemptive rights, SLC Agricola will now acquire 8.9k hectares. The remaining portions of the portfolio will be acquired by prominent competitors, with the Bom Futuro Group taking 18.7k hectares and agricultural producer Alexandre Bottan acquiring 4.6k hectares.

The downsized transaction significantly eases near-term leverage and cash drain concerns that had weighed heavily on the company's valuation. SLC Agricola will pay R$ 255 million upon signing, with the remaining R$ 414 million due by October 30, 2026. Furthermore, SLC will maintain operational continuity by continuing to lease 8.7k hectares of the remaining land through the 2029/30 season, preserving its regional production capacity while keeping its balance sheet protected.