Bunge Ltd. (BG) has agreed to acquire a Brazilian sugar cane producer in a $452 million stock deal.
The U.S. agribusiness and food-processing company will take on Usina Moema Participacoes SA, which owns a sugar-cane mill and has ownership interests in five others.
Chairman and Chief Executive Alberto Weisser said the deal “fulfills Bunge’s strategic goal of building a large-scale, fully integrated business in sugar and bio-energy,” according to a report in the Wall Street Journal.
If Bunge reaches agreements to secure the remaining interests in the mills, the deal’s total value will jump to $1.48 billion.
Moema Par shareholders will receive $7.3 million Bunge shares, while Bunge will assume about $480 million in debt.
Bunge shares were up about 1.3% in morning trading Thursday.
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