BRAZIL: Some mills seen as takeover targets
Published: 08/06/2012, 5:02:28 PM
Brazilian sugarcane mills are vulnerable to a wave of takeovers in which deep-pocketed groups devour fragile neighbours, while soft sugar and ethanol prices weaken small mills and make building new ones too costly, according to Agra-Net.
Although efficient smaller mills will survive, more of the world's sugar production is likely to fall into the hands of large traders such as Bunge, Cargill and Louis Dreyfus. Oil companies including Brazil's Petrobras and traditional sugar giants such as Cosan and France's Tereos will also expand by way of mergers and acquisitions of smaller rivals.