Indian sugar company makes investment in Brazil
Date added: 22nd February, 2010 at 10:09
(view all articles from February, 2010)
Categories: Natural Resources
Indian sugar company Shree Renuka has made an investment in Brazil that could be worth almost $1.2 billion (£779 million).
The firm has bought a controlling stake in Brazilian company Grupo Equipav, which is one of the largest producers of ethanol and sugar in the Latin American country.
"We have entered into definitive agreement with Brazil-based Grupo Equipav for an investment of Rs 1,530 crore (£213 million) leading to a majority controlling stake of 51 per cent," commented Shree Renuka chairperson Vidhya Murkumbi.
As part of the investment in Brazil, Shree Renuka will restructure Grupo Equipav's debts of $822 million (£532 million).
Ms Murkumbi described the debt as "huge" and said restructuring it was necessary.
The deal will make Shree Renuka one of the largest producers of sugar in the world.
This comes after two ethanol producers merged to make a $3.5 billion (£1.2 billion) investment in Brazil.
Brenco, which was struggling with debt, was bought by rival company ETH Bioenergy.
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