Indofood to buy Brazilian sugar mill

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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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. 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...

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.

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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