SINGAPORE : Noble Group, Asia's largest commodities trader, said on Monday it has signed a US$950 million deal to purchase two sugar mills from Brazilian and ethanol group Cerradinho Holding.
In a statement to the Singapore Exchange, it said the two mills will increase Noble's total annual sugarcane crushing capacity to 17.5 million tonnes.
This acquisition will propel the Singapore-listed firm into the top tier of sugar cane milling companies globally.
The two mills being acquired, Catanduva and Potirendaba, are fully operational in Sao Paulo state and are 50 kilometres from each other.
Both the facilities being acquired have good access to domestic and foreign markets and are located close to competitive rail infrastructure.
The mills have a strong operational track record and are active in both domestic and export markets.
Noble said the funding of the acquisition would come from existing resources.
Cerradinho, based in central Brazil, is one of the top 15 ethanol and sugar makers in Brazil, the world's largest producer of sugar.
On Monday, Noble shares fell 3 cents to end at S$2.04. – CNA/ch
Channel News Asia