Argentine Adecoagro to buy sugar mill in Brazil

Argentine agribusiness Adecoagro has announced its intention to acquire the Caarapó sugar mill in Brazil from Raízen, a joint venture between Shell and Cosan. The deal is valued at approximately 760 million reais, equivalent to $148 million, and is subject to adjustments, with payment to be made in cash upon closing.

The Caarapó facility, located in the state of Mato Grosso do Sul, processed around 3.5 million tons of sugar cane during the 2025/26 harvest. The acquisition encompasses the mill's own sugar cane fields as well as its external supply contracts. This move aligns with Adecoagro's stated "growth strategy" to broaden its footprint across South America.

Adecoagro, whose shares are traded on the New York Stock Exchange, is involved in the production of food, fertilizers, and renewable energy. The newly acquired plant is situated near Adecoagro's existing facilities, Angélica and Ivinhema, in the municipality of Caarapó. The mill possesses the capacity to produce sugar, hydrated and anhydrous ethanol, and renewable energy.