Ethanol merger results in £1.2bn investment in Brazil
Date added: 19th February, 2010 at 09:21
(view all articles from February, 2010)
Categories: Natural Resources
A merger between two ethanol producers will result in a $3.5 billion (£1.2 billion) investment in Brazil.
ETH Bioenergy has bought rival company Brenco, which was struggling with debts.
Along with the $3.8 billion (£1.33 billion) investment in Brazil already planned by the two companies, a further £1.2 billion will be put in by 2012.
"This strategic acquisition represents a decisive step in the growth plans of ETH and creates a leader of bioenergy, which combines competitiveness and sustainability," commented ETH chief executive Jose Carlos Grubisich.
The new company will be 65 per cent owned by shareholders of ETH and 35 per cent owned by Brenco shareholders and it will aim to produce three billion litres of ethanol annually by 2012.
Earlier this year, Royal Dutch Shell joined forces with Cosan to make a $1.625 billion (£1 billion) cash investment in Brazil over two years in a deal which makes Shell one of the largest producers of sugar cane in the world.
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