SAO PAULO (Reuters) – Cargill has signed a purchase and sale agreement for a 50% stake in SJC Bioenergia, giving it full control of the Brazilian sugar and renewable energy firm, according to a statement.
The U.S. grain trader declined to reveal the values involved in the transaction.
Cargill said the move advances its strategy in the renewable energy market.
The company, which arrived in Brazil 60 years ago, said it has invested more than 6.8 billion reais ($1.17 billion) on its local operations in recent years.
The transaction is subject to regulatory approval.
SJC Bioenergia, which was founded in 2006 and has had Cargill as a business partner since 2011, has 4,500 employees and two plants in the center-western state of Goias, the statement said.
Cargill said the company processes sugarcane and corn, producing raw sugar, hydrated and anhydrous ethanol, corn oil and distillers’ dried grains (DDGs) with high protein content, in addition to generating electricity.
($1 = 5.8025 reais)
(Reporting by Ana Mano; Editing by Marguerita Choy)
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