Sugar Producer Tereos to Merge European, South American and Indian Ocean Operations

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Researched by Industrial Info Resources (Sugar Land, Texas)--Grupo Tereos (Lille, France), Europe's third-largest sugar producer, has announced the intent to reorganize the company to become one of the world´s most important sugarcane processors.

Tereos Internacional will merge Grupo Tereos' European cereal operations, Indian Ocean sugarcane assets and the company's Brazilian subsidiary Acucar Guarani (Sao Paulo). The new company's headquarters will be located in Sao Paulo and will be listed in the BM&F Bovespa exchange in Sao Paulo and the Euronext stock exchange in Paris.

Grupo Tereos' first step for the reorganizaton is the incorporation of shares of Acucar Guarani into Tereos Internacional, the ratio of which will be negotiated with shareholders. Afterwards, initial public offerings will be made on the Brazilian and European stock exchanges.

Grupo Tereos expects to complete the merger by the end of June 2010. The aim is to have a strong participation in markets such as sugar, starch, bioenergy (ethanol and cogeneration), food & beverages, animal nutrition and pharmaceuticals. According to the company's statement, Tereos Internacional will generate about $2.5 billion in sales, enabling the group to be "more resistant to the economic and commodities cycles."

Grupo Tereos was formed in 2004 as a cooperative of French farms. By January 2006, the company had become the third-largest sugar producer in Europe, after German companies Nordzucker (Braunschweig) and Suedzucker (Mannheim).

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