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Cosan SA Industria & Comercio (CSAN3), which jointly owns the world’s largest sugar-cane processor with Royal Dutch Shell Plc (RDSA), is considering selling bonds to finance the acquisition of Exxon Mobil Corp. (XOM)’s Comma Oil and Chemicals for as much as $100 million.
The company, based in Sao Paulo, is still deciding whether to pay for the purchase with debt or cash, Nelson Gomes, head of Cosan’s lubricants division, said in a telephone interview from Rio de Janeiro today.
The acquisition announced today is the third time Cosan, controlled by Brazilian billionaire Rubens Ometto, has bought assets from Irving, Texas-based Exxon since 2008. Cosan plans to continue to expand abroad, Gomes said.
“We don’t want to stop where we are now,” he said. “For now we want to digest this acquisition and learn about how the market works in mature countries.”
Cosan bought service stations and fuel distribution assets in Brazil from Exxon for $826 million in 2008. In October, it agreed to buy Exxon’s lubricant distribution assets in Bolivia, Paraguay and Uruguay for an undisclosed amount. The company, which now derives most of its sales from fuel and lubricant distribution, produced just sugar and ethanol before those acquisitions.
Comma produces and distributes lubricants and antifreeze coolants to more than 40 countries, according to its website. The acquisition will likely increase Cosan’s sales of lubricants by as much as 20 percent, Gomes said. Cosan’s lubricants unit reported sales of 822.4 million reais ($481 million) for the fiscal year that ended March 31, 2011.
Cosan rose 1 percent to 31.07 reais at 4:13 p.m. in Sao Paulo. Before today, the stock has advanced 14 percent this year, more than the 16 percent increase of the benchmark Bovespa stock index.
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