Brazil: Cargill Buys Acucareira Corona

In a joint venture with Crytalsev and Fluxo, Cargill, one of the world’s largest marketeer of agricultural commodities, bought the Acucareira Corona, which owns the Bomfim and Tamoio mills, both located in the Sao Paulo state. Acucareira Corona employs some 7,000 people. This is the first time that Cargill buys into the sugar and alcohol production sector in Brazil.
The Tamoio mill produces some 175,000 tonnes of sugar, while the Bonfim produces 365,000 tonnes of sugar and 190 million litres of alcohol per year.
Although the parties have not disclosed financial figures, trade sources said that the transaction might be worth some USD 150 million, including debts.
Cargill has a strong presence in the Brazilian markets for soybeans, wheat and beef and, in ventures with Crystalsev, in facilities for shipping sugar and alcohol in the ports of Santos and Guaruja, both on the Sao Paulo litoral.
Cargill becomes the third foreign company investing in sugar and alcohol production facilities in Brazil, after the French companies Tereos and Louis Dreyfus.

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