Brazil’s Cade clears Cofco acquisition of two Bunge sugarcane mills
Brazil’s competition authority has cleared Cofco International’s acquisition of the Rio Vermelho and Nova Unialco sugarcane mills from Bunge. The deal transfers two São Paulo assets that joined Bunge through its 2025 combination with Viterra; the purchase price was not disclosed.
Competition authority clears transaction
Brazil’s Administrative Council for Economic Defense, known as Cade, has cleared Cofco International’s acquisition of two sugarcane mills from Bunge, removing a key regulatory condition for the transfer of the assets. Globo Rural reported that the decision by Cade’s General Superintendence was published in Brazil’s Official Gazette on Monday, September 28.
The transaction covers the Rio Vermelho and Nova Unialco mills in the municipalities of Junqueirópolis and Guararapes, respectively, in the state of São Paulo. Reuters reported when the agreement was announced on September 1 that the purchase price had not been disclosed. The transaction remained subject at that stage to customary closing conditions, including the necessary regulatory approvals.
Cade’s General Superintendence investigates and reviews mergers and acquisitions. Under the authority’s procedures, a recommendation for approval without restrictions becomes Cade’s final decision if no commissioner requests a review. The reported clearance therefore advances a deal that will expand Cofco’s industrial presence in Brazil’s sugar and ethanol sector, although the available disclosures do not provide production, crushing or storage capacities for the two plants.
Assets arrived through Bunge-Viterra combination
Rio Vermelho and Nova Unialco were previously owned by Viterra. They became part of Bunge when the companies completed their business combination in July 2025, according to Bunge’s announcement of the sale. The disposal therefore comes little more than a year after the assets entered Bunge’s portfolio.
Bunge said the sale was consistent with its strategic priorities and its positioning for long-term growth. Chief Operating Officer Julio Garros described the transaction as the appropriate next step for the company and thanked employees at the mills for their work. Bunge did not disclose financial terms or provide a timetable for completing the transfer.
The transaction gives Cofco two operating locations in the interior of São Paulo, one of Brazil’s principal sugarcane-producing states. It also consolidates ownership of the plants under a global agricultural trader already active in Brazilian commodities. For suppliers and employees around Junqueirópolis and Guararapes, the immediate operational significance will depend on Cofco’s plans for cane procurement, plant utilization and investment, none of which were detailed in the announcements.
Deal strengthens Cofco’s Brazilian platform
Reuters said the acquisition would enlarge the Chinese company’s presence in Brazil’s sugar and bioenergy industry. The assets can produce within a sector that serves both food and fuel markets: mills may direct sugarcane toward sugar or ethanol depending on their equipment, commercial commitments and market conditions. However, neither company disclosed the product mix planned for Rio Vermelho and Nova Unialco after closing.
The regulatory clearance is important for market participants because it reduces uncertainty over the ownership of two processing assets in São Paulo. Cane growers gain clarity over the prospective buyer of their crop, while sugar and ethanol traders can begin assessing how Cofco may integrate the mills with its existing origination and commercial operations.
The decision does not by itself establish how much additional output Cofco will control or whether the company will change production at either mill. No capacity, investment, employment or export targets were released. The immediate confirmed effect is narrower: Bunge is transferring two recently acquired sugarcane assets, and Cofco is adding them to its Brazilian platform after securing competition clearance.
