Petrobras to pay USD 1.2bn for cane-based ethanol from Tereos

(ADPnews) - Oct 25, 2010 - Brazilian sugar cane supplier Tereos International SA (SAO:ACGU3) will get BRL 2.1bn (USD 1.2bn/EUR 877m) to supply domestic oil and gas company Petrobras (SAO:PETR3) with cane-based ethanol over a period of four years, Petrobras said today.

According to the agreement, Tereos' Brazilian branch Acucar Guarani will provide up to 2.2 billion litres (581 million gallons) of green fuel to BR, the fuel distribution subsidiary of Petrobras.

BR is the leading fuel distributor in Brazil, with a market share of around 46% in 2009, according to Reuters.

In 2010 French sugar company Tereos SA spun off most of its non-sugar-beet business in a new company under the name of Tereos Internacional.

(BRL 1 = USD 0.588/EUR 0.419)

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