Bunge expands Brazilian sugar presence

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Food and agribusiness firm Bunge has said it has entered an agreement to acquire a Brazilian sugar company with an annual crushing capacity of 15.4 million metric tons.

The acquisition of Usina Moema Participacoes S.A. (Moema Par) will be structured as a share exchange, with Moema Par shareholders entitled to 7.3m shares in Bunge Limited. The transaction has a value of about $896 million, including about $480 million of net debt, based on the closing price of Bunge shares on December 23.

Chairman and CEO of Bunge Limited Alberto Weisser said: "This transaction fulfils Bunge's strategic goal of building a large-scale, fully integrated business in sugar and bioenergy. It adds significant scale to our current milling operations and enables us to vary production among multiple sugar and ethanol products, according to market conditions. The Moema Group cluster is also strategically located near large domestic markets in Brazil and has excellent access to export logistics systems.”

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