World’s Largest Ethanol Maker Take Over of Exxon Brazil Is a Surprise

Cosan takes over Exxon Brazil Cosan, a Brazilian company and the world's largest sugar and ethanol processor announced it has agreed to buy more than 1.500 Brazilian service stations and other assets from ExxonMobil (Esso Brazil) for US$ 826 million.

Cosan thus becomes the fifth-largest fuels distributor in Brazil, with 7.2% of the market. Esso Brazil also provides aviation-fuel services and owns a lubricant plant in Rio de Janeiro and distribution terminals. Under the agreement Cosan can use the Esso brand name and also takes charge of a 163 million US dollars debt.

"Placing Cosan in a relevant position in the fuel distribution sector is an important step towards consolidating ethanol as the main fuel in the Brazilian market, and the possibility of a faster and more precise market analysis is increasingly strategic," Cosan said in a statement.

The rising demand in Brazil for the so-called flex-fuel cars, which run on any mixture of gasoline or ethanol, helped propel ethanol sales volumes in Brazil past gasoline in February, Cosan said, citing the National Petroleum Agency.

"Between 2003 and 2007 ethanol consumption in Brazil increased 30.2% annually against gasoline's 2.8%", added Cosan which in 2007 had an turnover of 2.25 billion US dollars..

Exxon-Mobil has been divesting interests in South America and Cosan's takeover of Esso surprised the market because it was believed that Petrobras had the upper hand, since the Brazilian government managed company also was interested in the US corporation assets in Chile and Uruguay.

Mercopress

Tags:

You May Also Like

Rising Foreign Investment Lifts Brazilian Stocks

Brazilian investors were encouraged by a strong day on Wall Street and new economic ...

Brazil Fund Starts Process to Become Open-End Investment Firm

The Brazil Fund, Inc. announced that its board of directors approved the conversion of ...

Chico of the Spirits

Chico Xavier became a household name in Brazil during the 30s. By then, the ...

Brazil Breaks Record on Income, Jobs and Inflation Satisfaction

Brazilians seem more content with their life and are making positive forecasts about employment ...

Brazil: Presidential Elections Shaping Up as Referendum on Environment

Brazilian senator Marina Silva, Brazil's former environment minister has left the ruling Workers' Party, ...

American President George W. Bush and the first lady arrive in Brazil

Snubbing Chavez and Seducing Brazil Are Two Sides of Same Bush Game

George W. Bush’s trip to Latin America this month is the most ambitious attempt ...

With Everything to Be a Green Powerhouse Brazil Keeps Importing Its Herbs

The climate is favorable, the soil is rich and the herbs and spices harvesting ...

A Brazilian Movement Appeals to the UN to Stop the Amazon’s Belo Monte Dam

Delivered to the United Nations last Thursday, April 1st, a document claims that flaws ...

Sapatoterapia, one of Brazil's shoe manufactures at Germany's GDS/GLS

German Fair Brings Close to US$ 20 Million to Brazilian Shoemakers

Shoe companies from Brazil participating in the March edition of GDS/GLS – the International ...

Brazil Closer to Get Its US$ 100 Linux Laptop

The US$ 100 laptop prototype (about 240 reais) was presented this Wednesday, November 16, ...