March 30, 2021
Reuters | https://bit.ly/3rU3gOg
SAO PAULO/NEW YORK, March 30 (Reuters) - Brazil's Copersucar has reached a deal to buy Cargill's 50% share in the sugar trading venture Alvean for an undisclosed amount, the Brazilian company said on Tuesday.
With the deal, Copersucar will become the sole shareholder in Alvean, the world's largest sugar trading company, moving around 12 million tonnes of the sweetener per year, or around 20% of the global trade.
Copersucar said in a statement that it will pay for the transaction with cash from its reserves, declining to give the amount.
The deal is dependent on approval by Brazilian antitrust agency CADE, the company said.
Alvean was formed in 2014 when Cargill and Copersucar announced a deal to combine their global sugar trading operations.
Cargill said in a statement that Alvean's stake sale was part of a portfolio review.
The company said it plans to focus in its food and agriculture businesses, but added that it will remain active in commodities trading and will continue to supply sugar products to clients using existing operations in Brazil, Mexico and the United States.
A Copersucar source, who asked not to be named because they were not authorized to speak about the deal, said the company is open to evaluate opportunities to add a new partner in Alvean.
"We are fine with the idea of managing Alvean alone, but we will not put away the possibility of a strategic partnership that could strengthen the business, that could give it more efficiency," the source said.
Copersucar is responsible for selling sugar and ethanol produced by dozens of associated mills in Brazil. The company also controls U.S.-based ethanol trader and distributor Eco-Energy.