November 2 (SeeNews) - French sugar company Tereos S.A. announced on Friday that Brazil’s state-run oil giant Petroleo Brasileiro Petrobras S.A. (BVMF:PETR4) has increased its interest in their Brazilian sugar and ethanol joint venture Acucar Guarani S.A. to 45.9% for BRL 268 million (USD 69.5m/EUR 63m).
The transaction marks the final step of the partnership between Petrobras and Tereos which was signed in April 2010. As part of the deal, the Brazilian oil company was required to gradually increase its stake in the venture over a five year period. Petrobras now owns a 45.9% stake, while Tereos remains the majority shareholder with 54.1%.
Petrobras will pay the BRL 268 million on January 5, 2016, taking its total investment in the venture to BRL 1.611 billion.
At the moment, Guarani controls seven industrial units in the state of Sao Paulo. The company produced about 1.5 million tonnes of sugar in 2014.
Reuters reported in June that Petrobras had told Tereos it wants to sell its stake in Guarani as a part of a divestment plan. The oil giant, however, did not go ahead with the sale due to the low price Tereos offered.
(BRL 1 = USD 0.259/EUR 0.235)