Cosan, a Brazilian sugar and ethanol producer which recently set up a joint venture (JV) to enter the local iron ore market, said has signed a binding proposal to buy 100 percent of the Port of São Luís.
The Port of São Luís is a private use terminal under development in São Luís, in the state of Maranhão, Brazil, and is owned by China Communications Construction Company (CCCC) and other private owners. CCCC owns 51 percent of the port.
Cosan said the acquisition is subject to the approval of Brazilian and Chinese authorities. After Brazilian anti-trust authority, Cade, approves the deal, Cosan will buy a 49 percent stake at the port, and will then buy CCCC’s remaining 51 percent stake.
Cosan said earlier this year the iron ore JV as part of its plan to diversity its portfolio of investments. At the time, the company said Grupo Paulo Brito, which owns and controls Aura Minerals, will join Cosan for a JV to “explore iron ore, which will be transported by the Port (of São Luís).”
Cosan plans to use the Port of Sao Luis to support its new iron ore business.