Indofood to buy Brazilian sugar mill

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SugarcaneIndonesian agrobusiness giant Indofood is planning to purchase 50 per cent of Brazilian sugar-cane processor Cia. Mineira de Acucar e Alcool Participacoes (CMAA) as Brazil prepares to boost domestic consumption of ethanol.

By Mariana Angela Garcia

According to a Bloomberg report on January 30, Indofood has agreed to pay $72 million for the stake in CMAA, which cultivates sugar cane to produce sugar and ethanol and also generates electricity from biomass. It has a capability of processing 3 million metric tonnes of cane a year, which could be expanded to 3.8 million tonnes a year.

The reason for Indofood’s interest in CMAA is that Brazil plans to raise the rate for blending gasoline with ethanol to 25 per cent from the 20 per cent as of June 2013, therefore causing an annual increase in demand for the renewable fuel by 1.9 billion liters.

Indofood said in its January 28 filing to the Indonesia Stock Exchange that the deal is expected to close in the second quarter of 2013.

 

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Reading Time: 1 minute

Indonesian agrobusiness giant Indofood is planning to purchase 50 per cent of Brazilian sugar-cane processor Cia. Mineira de Acucar e Alcool Participacoes (CMAA) as Brazil prepares to boost domestic consumption of ethanol.

Reading Time: 1 minute

SugarcaneIndonesian agrobusiness giant Indofood is planning to purchase 50 per cent of Brazilian sugar-cane processor Cia. Mineira de Acucar e Alcool Participacoes (CMAA) as Brazil prepares to boost domestic consumption of ethanol.

By Mariana Angela Garcia

According to a Bloomberg report on January 30, Indofood has agreed to pay $72 million for the stake in CMAA, which cultivates sugar cane to produce sugar and ethanol and also generates electricity from biomass. It has a capability of processing 3 million metric tonnes of cane a year, which could be expanded to 3.8 million tonnes a year.

The reason for Indofood’s interest in CMAA is that Brazil plans to raise the rate for blending gasoline with ethanol to 25 per cent from the 20 per cent as of June 2013, therefore causing an annual increase in demand for the renewable fuel by 1.9 billion liters.

Indofood said in its January 28 filing to the Indonesia Stock Exchange that the deal is expected to close in the second quarter of 2013.

 

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