SLC Agrícola Slashes Radar Land Deal to R$669 Million

Brazilian agricultural giant SLC Agrícola (SLCE3) has successfully renegotiated the terms of its high-profile land acquisition from Radar, a joint venture between Cosan and Nuveen. Under the newly restructured agreement, SLC Agrícola 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 downsized transaction significantly eases near-term leverage and cash drain concerns that had weighed heavily on the company's valuation since the deal was first announced.

Instead of purchasing the entire 28.8k hectares of arable land as originally planned under its preemptive rights, SLC Agrícola will now acquire 8.9k hectares of the "Bloco Mato Grosso" land portfolio. The remaining portions of the block will be shared with prominent competitors, with the Bom Futuro Group taking 18.7k hectares and agricultural producer Alexandre Bottan acquiring 4.6k hectares. This consensual split allows SLC Agrícola to secure premium arable land while preserving its balance sheet. The company will pay R$255 million upon signing, with the remaining R$414 million due by October 30, 2026.

For investors, the renegotiated deal represents a major relief. The original R$1.85 billion price tag had triggered market skepticism regarding capital allocation and debt levels. By scaling back the acquisition, SLC Agrícola's projected leverage is expected to drop from 2.7x to 2.3x EBITDA. Furthermore, the company will maintain operational continuity by continuing to lease 8.7k hectares of the remaining land, preserving its regional production capacity without the heavy capital expenditure.

The market welcomed the dramatic reduction in financial risk, prompting a 3.3% rebound in SLCE3 shares following the announcement. This positive momentum occurred amid a broader rally in the Brazilian market, where the benchmark Ibovespa (IBOV) stood at 177,866.38 (+2.97%). In other major local assets, Petrobras (PETR4) traded at 39.65 (+1.12%), Vale (VALE3) reached 74.18 (+1.41%), and Itaú Unibanco (ITUB4) climbed to 44.3 (+4.02%).