South America Calling

Brazil's Antitrust Body Approves Cosan/ALL Deal

Cade, Brazil's anti-trust watchdog, Wednesday approved the $3 billion deal that puts Cosan, Brazil's No. 1 sugar and ethanol producer, in control of America Latina Logistica (ALL), Brazil's principal rail operator.

As I explained in Monday's blog, Brazil's soybean industry opposed the deal, in its current form, as it could create a virtual monopoly for bulk grain rail transport to Santos, Brazil's main grain port.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

ALL controls rail access to the port and, with the deal, Cosan/ALL has stakes in 45% of terminal capacity

Cade councilors did demand guarantees from Cosan that it would allow other sugar and grain traders equal access to the logistics. But the soybean industry, led by the Brazilian Soybean Oil Industry Association (Abiove), fear Cosan won't honor its guarantees and wanted Cade to force the sale of Cosan/ALL terminals.

Approximately 25% of Brazil's soybean exports are transported by rail and ALL carries virtually all of that.

(AG)

P[] D[728x170] M[320x75] OOP[F] ADUNIT[] T[]
P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]

Comments

To comment, please Log In or Join our Community .