Cargill negotiates purchase of Granol factories

The American Cargill, one of the global leaders in agribusiness and largest exporter of brazilian soy, is negotiating the acquisition of two units of Granol grain processing, which put assets up for sale in the face of financial difficulties. The value found that the multi is in talks to buy companhia paulista factories located in Anápolis (Goiás) and Porto Nacional (TO). Sought, the companies did not confirm the information. It is expected that the business will be completed by December. But chances are "collapsing", since there are disagreements about the value of the assets. According to sources, Granol asks about $ $400 million, a figure considered high in the market. Granol has launched in the market to sell part of its assets for more than a year. Like many companies that process soybeans in Brazil, the Sao Paulo felt the impact of the country's economic adversities and segment, where the margins are increasingly tight. The lights of 2017, your operating net cash was negative at $37.1 million, compared to R the R positive $521.7 million by the end of 2016. Amid the difficulties, the idleness of your soy processing Park climbed to 67.4% in 2017. In the production of biodiesel, 53.56%. In this context, the company's operational net revenue fell from R $2.95 billion in 2016, for R $1.79 billion in 2017. The injury has slowed, rising from $219 million to $48 million on R R comparison, thanks to divestments actions taken throughout the tax year. And where are they taking Granol mergers and acquisitions to search for a strategic partner or other alternatives. "It is common knowledge that the economic crisis in which it passed, and still passes the country, brought a strong reduction of provision of financial resources and, thus, the elevation of its costs," in your last balance sheet Granol, 2017. "Still persists the lack of working capital, which implies keeping the operation below the ' breakeven ', the company has adopted actions to disposals of non-operating assets, vehicles, aircraft and some non-strategic warehouses". Among those assets is the storage infrastructure in Sobradinho (RS), with a capacity of 350,000 bags of soybeans, sold in September to State Cotriel cooperative. "Last year we sold three warehouses that were not in operation. This year we have established some strategic partnerships in our crushing plants, which may have led to rumors [Sales], "said by e-mail, Paula Cadette, Chief Financial Officer and daughter of the founder of Granol, José Gomes Cadette. "The company studies the opportunity to sell the refinery of Tupa, whose operation was discontinued two years ago, when the new refinery in unit water cooler was built". According to the company, 15 warehouses still in activity. "The problem is that [Granol] is docked in debt," said a source aware of the situation, which does not allow much scope for negotiation of prices. Granol has been one of the main producers of biodiesel in the country, with three plants in operation. Also acts on industrialization of oilseeds, mainly soybeans, and has among its main crude oil, refined oil products, sharps, and soy lecithin. According to the company's website, its units are located in Tupã, Osvaldo Cruz and water cooler, in the State of São Paulo, Cachoeira do Sul (RS), Anápolis (Goiás) and Porto Nacional (TO). Logistics helps explain the interest of Cargill in the units of the crushing Granol in Goiás and Tocantins. The factory of Porto Nacional operates a transhipment connected to North South Railway, which allows to reduce the handling costs of bran to ports in the North, closer to the markets of Europe, North America and the Panama Canal. Already the of Annapolis has a charging terminal directly from production, installed in the same railroad, and a charging terminal connected to the Ferrovia Centro Atlântica, Bran drain route until the port unit of Granol in Victory. In times of so much conflict with the road freight, rail extensions bound assets earn even greater brightness.