Dividend Policy ConcernsThe acquisition raises questions about Adecoagro's dividend policy, which may face cuts if financial results do not improve.
Operational ComplexityAdecoagro's operational and geographic complexity, combined with new ventures and a recent change in controlling shareholder, adds uncertainty and contributes to a challenging outlook.
Rising LeverageAdecoagro's acquisition raises its net debt from $700 million to $1.2 billion, which could increase its net debt to EBITDA ratio from 2.3x to over 2.5x, exceeding management's comfort zone.