According to Cargill, the transaction involves Granol soy and biodiesel crush plants in the cities of Anápolis, Porto Nacional and Cachoeira do Sul, in addition to four warehouses in the states of Goiás and Tocantins.
Though the financial terms of the transaction remain obscure, Cargill said the offer is already submitted to Brazil’s antitrust authorities for approval.
“The purchase intention is in line with Cargill’s growth strategy in Brazil and Latin America and reinforces the company’s purpose of nourishing the world in a safe, responsible, and sustainable way,” Cargill said.
The acquisition will expand Cargill’s processing footprint in Brazil, the world’s largest producer and exporter of soybeans, while increasing the company’s biofuel-making capacity.
According to the website of the privately held company, Granol is Brazil’s largest producer of biodiesel, at 887 million liters annually.
Cargill would, therefore, be the largest biodiesel producer in the country following this acquisition.
According to Paula Cadette, the firm’s director-superintendent, the age of the company’s owners and large working capital requirements were key factors in the decision to sell 100% of Granol’s biodiesel business to Cargill.
Granola is keeping two soy processing plants in Sao Paulo state that make soy oil and soy meal, including one with an ongoing toll manufacturing agreement with Cargill in Bebedouro, Cadette said.
Cadette added that the possible renewal of the toll agreement with Cargill is still under discussion.
According to Reuters, Granol will keep two soy processing plants in Sáo Paulo that make soy oil and soy meal, comprising 30% of Granol’s original soy crushing capacity.
In a bid to expand its footprint in Brazil further, in June, Cargill expressed an interest in bidding for the assets of another privately owned crusher, Imcopa, which is in bankruptcy, but the acquisition is yet to materialize.
Headquartered in São Paulo (SP), Cargill has been operating in Brazil since 1965, has about 11,000 employees, and operates in 17 Brazilian states.