SAO PAULO - Brazil's antitrust regulator CADE approved Black River Asset Management LLC's acquisition of two sugar mills from Antonio Ruette Agroindustrial Ltda, according to a notice in the country's official gazette on Monday.
U.S.-based Black River, controlled by U.S. commodity trader Cargill, is buying two installations located in the municipalities of Paraiso and Ubarana in the main cane belt in Sao Paulo state.
The mills have a combined capacity to process around 3.8 million tonnes of cane per crop-year.
In September, when talks over a sale were confirmed, Regina Ruette, vice president of Antonio Ruette Agroindustrial, said the deal could be valued at around 700 million reais ($180 million) including debt.
This is the first acquisition in the Brazilian sugar and ethanol sector involving a major commodities trader in several years, coming after years of weak sugar and ethanol fundamentals that have tarnished the once-shining industry.
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Antonio Ruette Agroindustrial has been struggling to manage its debt load. Earlier this year, the company filed for court protection against creditors, but later withdrew the request on hopes it would seal the deal with Black River.
