Cargill has sold its 50% stake in the world’s largest sugar trader, Alvean, to its partner in the company, Copersucar SA, the company confirmed to Bloomberg. The deal was signed last week, but the transaction is subject to approval from Brazilian antitrust authorities, the report noted. Cargill and Copersucar SA formed the joint venture back in 2014.
Once the transaction is complete, Cargill will no longer be in the sugar-trading business.
Cargill told Reuters that company made the decision following a portfolio review and that it plans to focus more in its core food and agriculture businesses. However, the company also said it will remain active in certain commodities trading and will continue to supply sugar ingredients to clients using existing operations in the U.S., Brazil, and Mexico.
Alvean reportedly moves around 12 million metric tons of sugar annually, which is equal to approximately 20% of the global sugar trade. The company has eight locations across the globe, including four in Asia.