Cosan to acquire Zanin for R$90

On 10 January 2011 Brazil's largest sugar and ethanol producer Cosan signed a memorandum of understanding (MoU) to acquire Araraquara-based sugarcane producer Usina Zanan Acucar e Alcool (Zanin).

Under the MoU, Cosan would acquire all the outstanding shares of Zanin for R$142 million (€61.75 million) and assume the company's debts, expected to be around R$236.6 million.

However on 23 February the deal was finalised and Cosan will now acquire the company for R$90 million. The purchase figure changed following adjustments to working capital, liabilities and contingencies.

Cosan will finance the transaction using available cash.

The purchase will see Cosan gain access to Zanin's industrial and agricultural resources, in addition to a Prata, State of Minas Gerais-based greenfield project. Zanin's crushing capacity currently stands at 2.6 million tonnes of sugarcane a year.