Bunge Brazil unit buys majority stake in ethanol mill
SAO PAULO Sept 16 (Reuters) - Bunge Alimentos, the Brazilian unit of top grain processor Bunge Ltd (BG.N), said on Tuesday it has bought a majority stake in a sugar and ethanol plant in Brazil's center-west region.
Monteverde Agroenergetica mill, which is still being built, is scheduled to become operational in 2009, the company said in a statement.
"This purchase reinforces Bunge's role in sugar and ethanol processing in Brazil," the company said.
Bunge said it bought 60 percent of Monteverde's capital. The value of the deal was not disclosed.
Initial sugar cane crushing capacity will be 1.4 million tonnes per year, but it will then be increased to 4.5 million tonnes in the next four years, the company said.
The mill also will be able to produce and sell electric energy produced through the burning of the cane bagasse in the next two years.
Bunge Ltd, the No. 3 player in global agribusiness by revenue surprised Wall Street in July by announcing second-quarter profit had more than quadrupled on strong results from its fertilizer and agribusiness operations.
It also has been active in takeover activity. It said in July it would acquire the international sugar trading and marketing division of Tate & Lyle Plc (TATE.L) and in June it said it would buy Corn Products International Inc for $4.4 billion. (Reporting by Inae Riveras; Writing by Ana Nicolaci da Costa; editing by Carol Bishopric)
