Cargill’s Brazilian agribusiness arm Cargill Agrícola SA has received approval for its planned takeover of Brazilian biofuel producer Central Energética Vale do Sapucaí, or Cevasa.
Brazil’s competition authority CADE gave a green light for Cargill to acquire the remaining shares of Cevasa on 24 October, Reuters wrote on 26 October.
Cargill already owned a 62.88% stake in Cevasa, but with the acquisition approval it now intended to purchase the remaining 37.12% as well.
Cevasa, which operated a sugar and ethanol mill with an annual capacity of 2.5M tonnes in the town of Patrocínio Paulista in São Paulo state, suspended interest and principal payments on 700M reais (US$220M) of loans in May during a shareholder rift over a capital injection, according to Reuters.
The shareholder row reportedly came in the aftermath of falling ethanol prices and shrinking profit margins.