BRASILIA Feb 14 América Latina Logística SA
, Brazil's largest railroad operator, and logistics
company Rumo Logística have decided on broad terms of a merger
expected to be signed as soon as next week, newspaper Valor
Economico reported on Friday.
ALL would have 60 percent to 65 percent of the new company
while Rumo, controlled by sugar and ethanol producer Cosan SA
Industria e Comercio, would own 35 percent to 40
percent, Valor reported, without naming its sources.
The new company would be controlled through a shareholder
agreement in which only Cosan, state development bank BNDES and
two investment funds with a minority stake in Rumo would take
part, Valor said. Details on the deal were still pending, the
ALL said in a securities filing on Friday that the deal had
not yet been finalized.
"Although the negotiations have advanced in recent days,
there is not at this time a signed agreement, proposal or any
other document, binding or not, between the parties," it said in
Rumo's parent company, Cosan did not immediately respond to
calls seeking comment.
Brazil's government has encouraged the merger as it seeks to
boost investments in the country's dilapidated rail network.
BNDES would own about 8 percent of the new company, Valor said.
The deal between the two companies would settle a commercial
dispute over the transportation of sugar. ALL and Cosan have had
inconclusive talks about a tie-up in the past.