(ADPnews) - Dec 10, 2010 - Biofuel maker Brasil Ecodiesel (SAO:ECOD3) and Brazilian holding company Maeda have signed a merger agreement.
Brasil Ecodiesel will acquire the control over Maeda through a share swap operation, Brasil Ecodiesel's president, Jose Carlos Aguilera, said on Wednesday.
Under the terms of the agreement, which is still to be voted by the shareholders on December 23, Brasil Ecodiesel will receive 3.6395 shares in Maeda for each Brasil Ecodiesel share.
Thus, the merged company will be 67% controlled by the current shareholders in Brasil Ecodiesel and 33% owned by Maeda's current owners.
The new firm is seen to have a revenue of over BRL 700 million (USD 412.9m/EUR 312.2m) in 2011.
According to Aguilera, the merger is part of Brasil Ecodiesel's strategy to reduce its dependence on the biodiesel market, through a diversification in the agroindustrial segment.
However, this diversification does not rule out the production of biokerosene.
This week, Brasil Ecodiesel announced that it had teamed up with Brazilian airline TAM (SAO:TAMM3) to study the production of aviation biokerosene.