Cargill, Copersucar to form world's No. 1 sugar trader
WINNERS AND LOSERS
The new venture will likely have access to Copersucar's associate mills crush, which accounts for nearly a fifth of Brazil's annual cane crop, the source of half the world's sugar trade.
Smaller mills may worry that consolidation of the market will reduce the number of companies willing to buy their material.
"Selling sugar will be harder with Copersucar and Cargill working together. If you are independent or a small broker, business just got a shade tougher," said analyst Julio Maria Borges of consultants and brokers Job Economia.
The joint venture is expected to be completed in the second half of this year, Cargill said on Thursday.
Soren Hoed Jensen, sugar and ethanol sales executive director of Copersucar, will become the joint venture's chief operating officer, and Stefano Tonti, financial controller of Cargill's global trading and sugar businesses, will become the joint venture's chief financial officer.
Copersucar's Pogetti will become the first rotating chairman of the new joint venture.
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