[ad_1]
SAO PAULO, Aug 12 (Reuters) – Brazil’s Raizen SA RAIZ4.SA, the world’s largest producer of sugar and sugarcane-based ethanol, has spare capacity to expand production but does not rule out potential mergers and acquisitions, its chief executive said on Friday.
Ricardo Mussa’s remarks in anearnings callfollowed reports that the company was interested in acquiring BP Bunge Bioenergia, a Brazilian joint venture owned by British oil major BP PLC BP.L and U.S. commodities trader Bunge Ltd BG.N.
Reuters reported earlier this week that Raizen – a joint venture between Shell PLC SHEL.L and Cosan SA CSAN3.SA – and UAE state investor Mubadala Investment Co were final-round candidates to buy BP Bunge, the world’s third-largest sugarcane processor.
“We still have one BP Bunge inside of our company on spare capacity to grow, and that’s the major focus for us. (But) we never discard any potential deal if there is the right price, the right synergy,” Mussa said when asked about the matter.
“That is as much as we can share right now.”
Bunge has been trying to sell its ethanol plants in Brazil for a while, and said earlier this week it “continues to assess options to exit our participation in our sugar and bioenergy joint venture.”
BP declined to comment.
(Reporting by Roberto Samora; Writing by Gabriel Araujo; Editing by Richard Chang)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
[ad_2]
Source link
