Tether's $12.41 Billion Bid for Adecoagro Shakes Up South American Agriculture
1min read Tether, the issuer of the world's largest stablecoin, has made an unsolicited takeover bid for South American agricultural giant Adecoagro. The proposal, submitted on February 14, 2025, seeks to acquire a majority stake in the company through a tender offer at $12.41 per share, which would give Tether a 51% stake.
Adecoagro's board met two days later to evaluate the offer and decided to engage legal and financial advisors to assess its merits. The board has not made a final decision and has advised shareholders not to take any action yet. Adecoagro, founded in 2002 and headquartered in Luxembourg, is one of South America's largest agricultural producers, managing farmland across Argentina, Brazil, and Uruguay. The company produces key crops such as soybeans, corn, and rice, and is also a major player in the region's sugar, ethanol, and energy markets.
Tether Investments has gradually increased its position in Adecoagro over the past year, with its latest public filing on November 14, 2024, disclosing a 19.4% stake. The proposed offer represents a premium over recent market prices, although Adecoagro did not disclose the stock's trading level before the bid. The offer comes as global agricultural markets face increased interest from investors looking for exposure to food production and bioenergy sectors. Adecoagro's diversified operations and focus on sustainability have positioned it as a key player in the industry.
The Board of Directors of Adecoagro will respond in due course, emphasizing its commitment to shareholders' best interests. As the takeover bid unfolds, both parties will navigate the complexities of a potential acquisition, with the outcome likely to have significant implications for the agricultural sector and the broader investment landscape.
