January 15, 2021
American agribusiness Cargill is currently engaged in discussions to sell its 50% stake in Alvean, a sugar trading joint venture, to its partner in the business Copersucar SA, news wires and business media organizations reported this week.
Alvean is the world’s largest sugar trading entity, handling some 10 million tn/yr, according to Reuters. If the deal proceeds, Brazil-based Copersucar will own 100% of the business.
“Both shareholders are discussing an agreement in which Copersucar will become the sole owner, acquiring Cargill’s shares in Alvean,” the sugar and ethanol company said in a statement quoted by Bloomberg. “As soon as a deal is concluded, we will communicate.”
No information was available on the potential financial terms of the deal.
Cargill’s plans to exit from the joint venture follow the lead of several other major companies who have stepped away from the sugar business in recent years. Bunge sold its sugar trading business to Australian company Wilmar Sugar Pte. Ltd. in 2018. Last year, Olam entered into an agreement to sell its 50% interest in the Indonesian sugar joint venture Far East Agri to its partner Mitr Phol Sugar Corporation for $82.5 million.
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