22 March 2013 21:11 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Brazilian sugar and ethanol producer Tonon Bioenergia will boost its sugarcane crushing capacity by 30% after it agreed to buy out rival Paraiso Bioenergia, the company said on Friday.
The deal will increase the company’s capacity to 8.2m tonnes in the 2013-2014 harvest and 9.7m tonnes in 2015-2016, Tonon said.
The acquisition is subject to approval by the Brazilian antitrust regulator, CADE. Tonon expects the deal to be concluded within 30 days.
“This acquisition represents an important element of Tonon's growth strategy, building on our two existing sugarcane mills in Brazil,” said Tonon CEO Rodrigo Aguiar.
Paraiso owns a sugar, ethanol and renewable energy mill just 40 miles (64 km) from Tonon’s two facilities in the city of Brotas, Sao Paulo state.
The company produces farnesene, a renewable hydrocarbon fuel, in partnership with renewable fuels and chemical firm Amyris.
California-based Amyris said it welcomed the acquisition.
“While this change of control does not affect our operations in Brotas, we are pleased with the financial strength and growth strategy of the Tonon Group as well as their ability to secure additional sugarcane syrup to support our growth," said Amyris president Paulo Diniz.
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