Brazil's Raizen, the joint venture between Royal Dutch Shell Plc and Cosan SA, has agreed to buy Biosev SA, the sugar and ethanol unit controlled by Louis Dreyfus, in a cash-and-stock deal, the companies said on Monday.
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SAO PAULO/NEW YORK (Reuters) - Brazil’s Raizen, the joint venture between Royal Dutch Shell Plc and Cosan SA, has agreed to buy Biosev SA, the sugar and ethanol unit controlled by Louis Dreyfus, in a cash-and-stock deal, the companies said on Monday.
Raizen will pay 3.6 billion reais ($670.3 million) to Biosev shareholders, who will also receive 3.5% of Raizen preferred shares, plus 1.49% of redeemable shares, it said in a regulatory filing. The company declined to disclose the full purchase price.
The deal boosts Raizen’s position as the world’s largest sugar maker at a time when sugar prices are near the highest levels in four years. It also increases Raizen’s footprint in South America’s energy market.
Japan has set a target to grow the nation's ammonia fuel demand to 3 million tonnes a year by 2030 from zero now and to create a new supply chain of the fuel in a bid to cut CO2 emissions and combat climate change, its industry ministry said on Monday.
Brazil's Raizen, the joint venture between Royal Dutch Shell Plc and Cosan SA, has agreed to buy Biosev SA, the sugar and ethanol unit controlled by Louis Dreyfus, in a cash-and-stock deal, the companies said on Monday.
Royal Dutch Shell's profit last year dropped to its lowest in at least two decades as the coronavirus pandemic hit energy demand worldwide though the company's retail network and trading business helped cushion the blow.