Tereos to acquire Petrobras stake in Guarani
Tereos has announced that it has signed an agreement with Petrobras to purchase its 45.97 percent stake in Guarani, a Brazilian sugar and ethanol production company jointly owned by Tereos and Petrobras subsidiary Petrobras Biocombustível, for US$202 million.
France-headed sugar major Tereos has announced that it has signed an agreement with Brazilian energy major Petrobras to purchase its 45.97 percent stake in Guarani, a Brazilian sugar and ethanol production company jointly owned by Tereos and Petrobras subsidiary Petrobras Biocombustível, for US$202 million. Subject to approval from Brazilian competition authorities Administrative Council for Economic Defence (Cade), the transaction will provide Tereos sole ownership of Guarani, which will be renamed Tereos Açúcar e Energia Brasil. the third largest sugar producer in Brazil and it will be renamed Tereos Açúcar e Energia Brasil
– I am pleased with the agreement we have reached with Petrobras and I want to thank them for their commitment to Guarani alongside us since 2010. This transaction follows Petrobras’ announcement to refocus on its core business of oil and natural gas exploration and production. For Tereos, this acquisition is an opportunity to strengthen its foothold in Brazil, the number one sugar-producing country in the world, said Alexis Duval, Chief Executive Officer, Tereos in a statement.
Guarani is the third largest sugar producer in Brazil and in the 2016/17 crop season, it will crush close to 20 million tonnes of sugarcane to produce 1.6 million tonnes of sugar, over 630 million litres of ethanol and supplied more than 1 GWh of bio-electricity to the grid. Guarani has seven sugar and ethanol factories; Andrade, Cruz Alta, São Jose, Severinia, Mandu, Tanabi and Vertente and two refineries; Cruz Alta and Andrade all situated in the state of São Paulo, widely regarded as the best agricultural area in Brazil for sugarcane cultivation.
With a strong local presence, Guarani maintains close relationships with more than 1 200 sugarcane growers and producers with over 300 000 ha of cultivated land. Guarani boasts a fully-mechanised sugarcane planting and harvesting and is a pioneer in the adoption of new precision agriculture technology.
Its industrial facilities are among the most modern and competitive in the world thanks to ambitious competitiveness and investment programmes that have been carried out. In addition to traditional sugar and ethanol production activities, Guarani has successfully developed a significant capacity of energy sales to the grid.