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SAO PAULO, April 28 (Reuters) - Brazilian state-run oil company Petrobras said on Thursday it had failed to close the sale of its UFN-III fertilizer plant to Russia's Acron Group due to differences regarding the business model the latter proposed for the factory.
Petroleo Brasileiro SA, as the company is formally known, will look to start a new process to sell UFN-III, which is located in the state of Mato Grosso do Sul, as soon as possible, it said in a securities filing.
Petrobras had announced a deal to sell the plant to Acron in February and President Jair Bolsonaro's administration said he would discuss the move with Russian counterpart Vladimir Putin during an official trip to Moscow that month.
"The business model proposed by the potential buyer, which would replace the original project, made it impossible to get certain government approvals that were necessary for the deal to continue," Petrobras said.
Acron, a leading mineral fertilizer producer in Russia and globally, held talks with Petrobras in 2018 about buying the plant in 2018 which were suspended before resuming last year.
The designed annual capacity of the UFN-III plant, also known as Nitrogen Fertilizer Unit III, is 800,000 tons of ammonia and 1.3 million tons of carbamide. (Reporting by Gabriel Araujo; editing by Jason Neely)