Brazilian sugar and ethanol producer Tonon Bioenergia plans to acquire renewable energy company Paraiso Bioenergia to expand its sugar-cane production capacity by around 50%.
Paraiso operates two mills in partnership with US-based Amyris Inc., to produce renewable hydrocarbon fuel s farnesene, from sugar-cane juice.
Tonon has agreed to pay the acquisition amount through the existing shares although the financial terms of the deal are undisclosed, reported Bloomberg.
As per the agreed terms of the transaction, Paraiso owners – the Pinheiros family – will receive a 7% stake in Tonon.
Following the closure of the transaction, Tonon’s sugar-cane crushing capacity will increase from 5.7 million tons to 8.2 million metric tons.