A PYMNTS Company

Brazil: Sugar giant faces uphill battle for railway buyout

By  |  April 23, 2014

Top sugar producer Cosan is facing an uphill battle to obtain regulatory clearance to acquire train operator America Latina Logistica, a $3 billion merger that would combine Brazil’s largest sugar maker with the nation’s largest railway.

According to reports, speculation has cast doubts over whether Cosan would continue to prioritize sugar shipments over the shipments of others goods via railway following the transaction. Former antitrust regulator CADE president Fernando Furlan spoke with reporters and echoed this concern.

Furlan said CADE could either block the deal or require divestitures.

The doubts rose just days after ALL controlling shareholders approved of the transaction.

Full Content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.