Copersucar and Cargill have announced 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% 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.
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 partnership provides 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.
The new company will be an independent joint venture of its two parent companies, 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.