MOSCOW (MRC) -- Tereos announces the signing of an agreement to purchase the 45.97% stake in Guarani, held by Petrobras, through its subsidiary Petrobras Biocombustivel, for a consideration of USD202 million, said the producer on its site.
Through this transaction Tereos, which already held 54.03% of Guarani’s share capital, will increase its stake to 100%, thus becoming the sole shareholder.
Brazil is the world’s top producer and exporter of sugar, with a market share close to 50% of global exports. This is due to Brazil’s strong competitiveness, the best in the world, which is based on its natural assets, notably its climate and sugarcane technology. Tereos is the 3rd largest sugar producer in Brazil, through its subsidiary Guarani. In a sugar market experiencing constant growth in emerging countries, this position is a key strategic asset for Tereos.
In 2016/17 crop, Guarani transformed close to 20 million tons of sugar cane to produce 1.6 million tons of sugar, over 630 million liters of ethanol and commercialize more than 1 GWh of bio-electricity to the grid.
Guarani has seven sugar and ethanol factories (Andrade, Cruz Alta, Sao Jose, Severinia, Mandu, Tanabi and Vertente) and two refineries (Cruz Alta and Andrade) all situated in the state of Sao Paulo, the best agricultural area in Brazil for sugar cane cultivation. With a strong local presence, Guarani maintains close relationships with more than 1,200 sugar cane growers and producers and valorizes the crops of more than 300,000 hectares of cultivated land. Guarani boasts a fully-mechanized sugar cane planting and harvesting. It is a pioneer in the adoption of new precision agriculture technology.
Following this acquisition, Tereos announces that Guarani will be renamed Tereos Acucar e Energia Brasil.
The closing of this transaction is subject to the approval of the Brazilian competition authorities.
As MRC informed earlier, Petroleo Brasileiro SA said its board approved the sale of two petrochemical companies, Petroquimica Suape and Citepe, to Mexico's Alpek SAB de CV for USD385 million.
Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.