BRASILIA, Feb 14 (Reuters) - América Latina Logística SA , Brazil’s largest railroad operator, and logistics company Rumo Logística have decided on the terms of a merger deal expected to be signed as soon as next week, Valor Economico reported on Friday.
ALL will have 60-65 percent of the new company while Rumo, controlled by sugar and ethanol producer Cosan SA Industria e Comercio, will own a 35-40 percent stake, Valor reported, without saying how it obtained the information.
The new company will be controlled through a shareholders’ agreement, in which only Cosan, state development bank BNDES and two investment funds with a minority stake in Rumo will take part, Valor said. Details on the agreement are still pending, the newspaper added.
Representatives from ALL and from Rumo’s parent company Cosan did not respond to calls from Reuters on Friday.
Brazil’s government has encouraged the merger as it seeks to boost investments in its dilapidated rail network. BNDES will own about 8 percent of the resulting company, Valor said.
The deal between the two companies will settle a commercial dispute over the transportation of sugar. ALL and Cosan have had inconclusive talks about a tie-up in the past.