Glencore buys mill, enters ethanol sector-report

* Company pays over $80 mln in its first cane venture

* Glencore to invest to expand capacity, produce sugar

SAO PAULO, Dec 2 (BestGrowthStock) – Commodities trader Glencore has
bought a stake in Brazilian ethanol plant Rio Vermelho, its
first ever investment in the cane sector, a Brazilian newspaper
reported on Thursday.

The Swiss-based Glencore [GLEN.UL] paid more than $80
million for a stake of around 70 percent in the mill, O Estado
de Sao Paulo newspaper said without revealing the source of the
information.

Located in the state of Sao Paulo, Rio Vermelho produces
only ethanol, which is sold in the local market. It can crush up
to 1.3 million tonnes of cane per season.

Glencore is now expected to invest to expand the mill’s
capacity, produce sugar and generate electricity from cane
bagasse. Glencore is a major global sugar trader and one of the
world’s largest commodities traders.

A source close to the deal told Reuters in October that it
had signed an agreement to buy a stake in Rio Vermelho.
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Officials at Glencore in Sao Paulo were not immediately
available to comment.

Brazil’s cane industry has undergone a wave of mergers and
acquisitions in the past few years. Consolidation has sped up
after the global financial crisis hit groups that had
over-leveraged their expansion plans.
(Reporting by Inae Riveras; Editing by Alison Birrane)

Glencore buys mill, enters ethanol sector-report