Copersucar and Cargill are combining their global sugar trading activities to form a new joint venture.
The move is an effort to better the sugar supply chain by increasing its efficiency, quality and services. As a result, the two companies believe the new joint venture, which will have a global footprint, will benefit its customers. In addition, they hope the move also will help them leverage an in-depth understanding of the worldwide market.
The new joint venture will originate, commercialize and trade raw and white sugar. And, both Copersucar and Cargill will own a 50-percent stake in it.
The new company, which will be named when the deal officially closes, will be an independent joint venture of its two parent companies, Copersucar and Cargill. The joint venture is dependent upon regulatory approval, which is expected in the second half of 2014.
Both companies' combined global supply chain will allow the new joint venture to quickly move a wide range of sugar qualities and different origins from port to destination, making it easier for them to compete on a global scale and meet the demands of customers worldwide.
Luis Roberto Pogetti, chairman of Copersucar, is slated to become the first rotating chairman of the new joint venture.
“Through the new company, Copersucar reinforces its strategy of achieving a global footprint in the sugar market,” he explains. “Copersucar also enhances its unique business model, based on large-scale supply, logistic capacity and the integration of all links of the chain, from the producers to the customers."
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.
The joint venture also will have a true global presence with additional representation offices around the world. Ivo Sarjanovic, who currently leads Cargill's sugar business, will be appointed chief executive officer once the new company is formed.
Soren Hoed Jensen, current sugar and ethanol sales executive director of Copersucar, will become the joint venture's chief operating officer, while Stefano Tonti, currently financial controller of Cargill's global trading and sugar businesses, will become the new joint venture's CFO.
"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," says Olivier Kerr, Cargill corporate v.p.
Both companies' ethanol businesses and fixed assets, such as terminals and mills, are excluded from this transaction. These activities will remain separate businesses, individually owned by Cargill and Copersucar.