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

    Cosan takes over Exxon Brazil

    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:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazil’s Referendum Fever: Congress Gets More than 300 Proposals

    The Brazilian referendum on banning firearms and ammunition sales revived the debate on how ...

    Qatar Airways

    Doha-São Paulo Daily on Qatar Airways’s Boeing 777s

    Qatar Airways, starting in June, will operate daily flights between Doha and São Paulo. ...

    Olhares Cruzados, an Africa-Brazil exchange program

    Slavery Is Past. It’s Time Brazil and Africa Unite in Mutual Understanding

    "Without Angola, there is no Brazil," said the polemical Friar Antonio Vieira at the ...

    Brazilians doing business in Casablanca's roundtable

    For Brazilians, Casablanca Is the Beginning of a Beautiful Deal

    The majority of representatives of Brazilian companies participating in a mission to North Africa, ...

    Male Power

    By Brazzil Magazine "Homem tem que ser durão" [A man’s got to be tough] ...

    Brazil’s General in Haiti Just Wants to Hide Own Incompetence

    Lt. Gen. Augusto Heleno, the Brazilian commander for the U.N. peacekeeping troops in Haiti, ...

    Salmon from Brazil

    Due to Lack of Training Brazil Still Imports More Fish than It Exports

    The second main fishery producer region in Brazil losing only to the Northeast is ...

    United States Pilgrim's Pride

    Brazil JBS Swallows US Pilgrim’s Pride to Become World’s Biggest Meat Company

    Brazilian company JBS announced that the United States Justice Department has approved the takeover ...

    Brazil’s Lula Gets Boost from Polls

    The positive evalution of Brazil’s President Luiz Inácio Lula da Silva’s Administration rose 3.2% ...

    São Paulo governor, Geraldo Alckmin

    Now Is the Opposition’s Turn to Get Involved in a Corruption Scandal in Brazil

    After the mensalão (big monthly allowance) case rocked Brazil’s ruling party, the Workers Party ...