Brazil ETH takes over Brenco, forms ethanol giant

Reuters
Thu Feb 18, 2010 1:40pm EST
By Roberto Samora

* Brenco, a smaller ETH rival, weakened by credit crisis
* Companies' combined revenue about $2.2 bln a year

SAO PAULO, Feb 18 (Reuters) - Brazilian ethanol and sugar company ETH has agreed to take over smaller, debt-laden rival Brenco to create one of the world's largest ethanol producers, the latest in a series of large acquisitions in the sector.

The combined company, called ETH Bioenergia, should have annual output capacity of 3 billion liters of ethanol by 2012 and annual sales of about 4 billion reais ($2.2 billion), the companies said in a statement announcing the deal on Thursday.

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