US: Cargill, Copersucar to form sugar JV
Cargill, Copersucar in sugar tie up
Cargill and Copersucar have announced plans to combine their global sugar operations in a 50-50 joint venture.
The companies believe the independent unit will "increase efficiency, quality and services" in the sugar supply chain.
"Both companies' combined global supply chain will allow the new joint venture to seamlessly move a wide range of sugar qualities and different origins from port to destination in a timely and efficient manner, meeting the specific requirements of customers worldwide," the companies said in a joint statement.
The tie-up is dependent on regulatory approval and is expected to close in the back half of the year. The new business's name will be announced on closing.
The trading activities of the venture will be based out of Geneva. The venture will have offices in nine cities including Hong Kong, Sao Paulo, Miami and Moscow.
Ivo Sarjanovic, who leads Cargill's sugar business, will be appointed CEO of the new company.
Soren Hoed Jensen, sugar and ethanol sales executive director of Copersucar, will become the joint venture's COO.
Cargill & Copersucar reach agreement to combine global sugar trading activities in new joint venture
The joint-venture will:
originate, commercialize and trade raw and white sugar globally
aim to serve customers better by connecting the strengths and capabilities of
Copersucar and Cargill to increase the efficiency, quality and logistics in the sugar supply chain
Geneva, Switzerland and Sao Paulo, Brazil - 27 March 2014 - Copersucar and Cargill announced today an agreement to combine their global sugar trading activities into a new joint venture that will originate, commercialize and trade raw and white sugar. The joint venture, in which both Copersucar and Cargill will own a 50-percent stake, will have a global footprint.
The joint venture will build on the capabilities of both companies with the intent of increasing the efficiency, quality and services in the sugar supply chain as well as leveraging an in-depth understanding of the worldwide market to the benefit of our customers.
Its customers will benefit from the complementary strengths of Copersucar and Cargill. Both companies' combined global supply chain will allow the new joint venture to seamlessly move a wide range of sugar qualities and different origins from port to destination in a timely and efficient manner, meeting the specific requirements of customers worldwide. The new joint venture will benefit from a global footprint as well as large-scale supply of Copersucar's partner mills in Brazil, complemented by Thai, Indian, Central American and Australian origins. Additionally, it will benefit from the companies' proven track-record in logistics management and access to the elevation terminals in Brazil.
Luis Roberto Pogetti, Chairman of Copersucar commented: "Through the new company, Copersucar reinforces its strategy of achieving a global footprint in the sugar market. Copersucar also enhances its unique business model, based on large-scale supply, logistic capacity and the integration of all links of the chain, from the producers to the customers."
Olivier Kerr, Cargill Corporate Vice President, added: "We believe that the strong analytical capabilities of our trading teams combined with the global footprint of this new joint venture, will offer our customers a distinct understanding of the global market."
Cargill and Copersucar have shared business values. They are committed to high ethical business standards and to being a responsible partner in the communities in which they operate.
The new company will be an independent joint venture of its two parent companies, Copersucar and Cargill, with a new name to be announced at closing. The trading activities will be based out of Geneva, Switzerland, and the joint venture will have offices in Hong Kong, Sao Paulo, Miami, Delhi, Moscow, Jakarta, Shanghai, Bangkok and Dubai. Furthermore, the joint venture will have a true global presence with additional representation offices around the world. Ivo Sarjanovic, who currently leads Cargill's sugar business, will be appointed chief executive officer once the new company is formed. Soren Hoed Jensen, current sugar & ethanol sales executive director of Copersucar will become the joint venture's chief operating officer, and Stefano Tonti, currently financial controller of Cargill's global trading and sugar businesses, will become the new joint venture's CFO. Luis Roberto Pogetti, Chairman of Copersucar, will become the first rotating Chairman of the new joint venture.
Both companies' ethanol businesses and fixed assets, such as terminals and mills, are excluded from this transaction. These activities will remain separate business, individually owned by Cargill and Copersucar.
The formation of this new joint venture is dependent upon regulatory approval, which is expected in the second half of 2014.
Original source: Cargill
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