ADM eying Brazilian ethanol market
Archer Daniels Midland, the largest producer of ethanol in the US, is considering purchasing Cosan, the largest ethanol producer in Brazil.
Entering the sugarcane-ethanol field is a key component of ADM’s short-term
strategy, according to a report in The Wallstreet Journal, which cites company
executives including ADM’s senior vice president of strategy, Steve
Mills.
Mills did not specify how much ADM is willing to invest to enter the Brazilian sugarcane
ethanol market. The company could use Brazil as a production base for exports to
the United States, according to the Journal.
Cosan has a market capitalization of about $3.5 billion,
according to Reuters’ data.
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