Bunge to acquire land in Brazil

A man headed to work at a sugar plantation in Orlandia in São Paulo State, which accounts for 60 percent of the sugar production in Brazil. (Photo: Lalo de Almeida for The New York Times)

Zacks Investment Research  | May 03, 2010

By: Zacks Equity Research

Bunge Limited (BG - Snapshot Report), a premier global agribusiness and food company in the U.S., has recently announced plans to acquire 25,000 acres in Sao Paulo, Brazil, from the local firm Acucar Guarani to grow cane for its sugar and ethanol mills.

Acucar Guarani is a leading Brazilian company that manufactures, imports, and exports sugar, alcohol and other derivatives of sugar cane. The company has operating units in Sao Paulo and Rio de Janeiro, and is a subsidiary of Tereos Group, Europe’s third-largest sugar producer.

With the deal, Bunge would move a step ahead in its strategic goal of building a large-scale, fully integrated business in sugar and bioenergy. Brazil is also a fast-growing market for ethanol with the world's lowest-cost production facilities. The transaction is valued at approximately $80 million. The acquisition would further enable Bunge to vary production volumes among multiple sugar and ethanol products, according to the market conditions.

Headquartered in White Plains, New York, Bunge supplies fertilizer to farmers in South America; originates transports and processes oilseeds, grains and other agricultural commodities worldwide; produces food products for commercial customers; and supplies raw materials and services to the bio-fuels industry. Bunge has leading vegetable oil, margarine and mayonnaise brands in South America, Europe and Asia, as well as a wide range of quality milled corn and wheat products in the Americas.
URL to Article: https://farmlandgrab.org/post/view/12701

Source: Zacks 

Links in this article