Brazil's regulator clears Sao Martinho to buy sugarcane mill
Jul 24, 2014 - Brazilian antitrust regulator Cade has allowed local sugar and ethanol producer Sao Martinho (BVMF:SMTO3) to increase its stake in the Santa Cruz mill by 56.04% to 92.13%, according to a report in the state gazette on Wednesday.
Sao Martinho has reached an agreement to purchase the stake from Luiz Ometto Participacoes (LOP) and other shareholders for BRL 315.8 million (USD 142.3m/EUR 105.7m). The company will thus add a crushing capacity of 4.5 million tonnes of sugarcane to its production.
Simultaneously, LOP will acquire Sao Martinho's stake in nearby land owner Agro Pecuaria Boa Vista.
Sao Martinho already has three mills in Sao Paulo and Goias states. In the last crop year, the group processed 15.6 million tonnes of cane.
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