Copersucar and Cargill have announced an agreement to combine their global sugar trading activities into a new joint venture that will produce, commercialise and trade raw and white sugar.
The 50-50 joint venture will bring together Cargill’s global trading and logistics expertise with Copersucar's production network - which produces 10% of the world's sugar exports - and includes partner mills in Brazil.
The firms said that the 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.
"We believe that the strong analytical capabilities of our trading teams combined with the global footprint of this new joint venture, will offer our customers a distinct understanding of the global market," said Olivier Kerr, Cargill corporate VP.
Both companies' ethanol businesses and fixed assets, including terminals and mills, are excluded from the transaction and will remain separate business, individually owned by Cargill and Copersucar.
Joined up thinking
The new company will be an independent joint venture of its two parent companies, Copersucar and Cargill, with a new name to be announced. Ivo Sarjanovic, who currently leads Cargill's sugar business, will be appointed chief executive officer once the new company is formed.
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.
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.
Regulatory approval of the new joint venture is expected in the second half of 2014.