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Raízen, Global Producer of Sugar and Ethanol, Gets CADE Approval to Acquire Biosev Plant for 3.6 Billion Reais Plus Additional Amount in Shares

Written by Flavia Marinho
Published on 04/03/2021 at 10:41
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Raízen of Shell Group Acquires Louis Dreyfus Biosev for R$3.6 Billion Plus Shares, Expanding Domination in Sugar and Ethanol in Brazil

Raízen, the global giant in sugar and ethanol production from sugarcane, has received authorization from the Brazilian antitrust authority for the acquisition of 9 Biosev mills, a transaction announced by the companies on 02/08, which will involve a payment of 3.6 billion reais and shares. Looking for a job? Maintenance stop at Braskem petrochemical in SP demands job vacancies for all positions on this day, March 4

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“This operation does not raise major concerns in terms of competition, due to the low market shares held by the acquirers in the horizontally and vertically related markets,” said Cade in a statement regarding the transaction. The approval was published in the Official Gazette on Tuesday.

The New Mills of Raízen, the Global Giant in Sugar and Ethanol from Sugarcane

According to Raízen, the purchase includes nine sugar and ethanol mills strategically located (six in the State of São Paulo, two in Mato Grosso do Sul, and one in Minas Gerais), representing an installed crushing capacity of up to 32 million tons of cane. The operation also includes cogeneration of energy, with an export capacity of up to 1.3 GWh of electricity per year, and an area of 280 thousand hectares of planted cane.

With the integration, Raízen, a joint venture of Cosan and Shell, will have a total of 35 mills producing ethanol, totaling an installed crushing capacity of 105 million tons of cane and about 1.3 million hectares of crops, equivalent to 15% of the planted area in Brazil.

Positioned competitively in the market, with operational efficiency and financial discipline, the giant ethanol producer states that the operation strictly follows capital discipline principles and will not impact the company’s leverage, preserving the credit profile of the company, which is currently “investment grade” by the three largest global rating agencies.

Expensive Gasoline Caused Ethanol Prices to Rise in All Brazilian States

With another increase in gasoline prices at fuel stations since yesterday (03/02), people have opted for using ethanol. Only last week, the biofuel increased in all Brazilian states – without exception, according to data from the National Agency of Petroleum, Natural Gas, and Biofuels (ANP) conducted between February 21 and 27. Read the full article here

Flavia Marinho

Flavia Marinho é Engenheira pós-graduada, com vasta experiência na indústria de construção naval onshore e offshore. Nos últimos anos, tem se dedicado a escrever artigos para sites de notícias nas áreas militar, segurança, indústria, petróleo e gás, energia, construção naval, geopolítica, empregos e cursos. Entre em contato com flaviacamil@gmail.com ou WhatsApp +55 21 973996379 para correções, sugestão de pauta, divulgação de vagas de emprego ou proposta de publicidade em nosso portal.

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