BRUSSELS -- The European Commission on Tuesday approved the joint venture between Shell and a Brazilian sugar and ethanol company.
The Commission cleared under the EU Merger Regulation the establishment of a joint business between UK-based Shell and Brazil's Cosan S.A. Indústria e Comércio of Brazil.
The new joint venture will dedicate to the production, distribution and sale of sugar, ethanol and related products. The merger would be made through Shell Brazil Holding B.V. which belongs to the Shell Group.
In addition, the activities of the venture will also include the development and licensing of certain ethanol technologies, the supply, distribution and sale of transportation fuel products in Brazil, and the production and sale of co-generation power at the sugar and ethanol facilities of the joint venture in the South American country.
Shell is a global group of energy and petrochemical companies. On the other hand, Cosan is dedicated to the manufacturing and trading of sugar and ethanol, the co-generation of electricity from sugarcane, the distribution of fuels, and the production and distribution of lubricants in Brazil.
The merger was approved after the Commission determined that the market of suppliers of bio-ethanol for ex-refinery, non-retail, and retail sales of motor fuels has the participation of a considerable number of other suppliers. Thus, the new joint venture by Shell will not raise competition concerns.
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