Benetton sells 900,000 hectares of farmland in Argentina

A group of partners and executives from agricultural firm Adecoagro has acquired two businesses belonging to the Benetton family's holding company in a deal involving more than 900,000 hectares of land across four Argentine provinces.

The transaction effectively marks the end of the Italian family's 35-year presence in Argentina, where it built up a major agricultural and livestock business.

The Benettons were among Argentina's largest landowners, with holdings that placed them prominently on rankings of the country's biggest private landholders. Their vast Patagonian estates have featured in debates over land ownership and foreign investment in Argentina.

Mariano Bosch, Adecoagro's chief executive, led the acquisition of Compañía de Tierras Sud and Ganadera Cóndor, a deal that had been in the works for around a year, sources close to the transaction confirmed to the Noticias Argentinas (NA) news agency.

The purchase was made by the investors in their individual capacity, rather than by Adecoagro itself, reported NA. The agency said Agustín Dranovsky would remain on as CEO of Compañía de Tierras Sud.

The two companies operate agricultural and livestock establishments in the provinces of Buenos Aires, Río Negro, Chubut and Santa Cruz, with activities focused primarily on sheep farming, wool production and agriculture.

The Patagonian operation comprises around 250,000 sheep and produce more than 880,000 kilos of wool, according to reports. In Buenos Aires Province, the agricultural business grows potatoes, maize and wheat.

Compañía de Tierras Sud Argentino was the main vehicle through which the Benetton family developed its Argentine agricultural and livestock operations under the Edizione holding group.

The family acquired the company in 1991, when it held around 360,000 hectares across the Leleque, Maitén, Pilcaniyeu and Montoso estates in Chubut and Río Negro. 

The companies have also operated in cattle farming, forestry and meat processing.

The sale comes amid Adecoagro's wider expansion. The company recently joined the Asociación de Cooperativas Argentinas (ACA) in acquiring fertiliser producer Profertil in a deal valued at US$1.2 billion.

Adecoagro was not directly involved in the Benetton transaction. Its value and terms were not disclosed, NA reported.