DJ Czarnikow Forms Sugar, Ethanol Alliance With Deutsche Bank

Deutsche Bank AG (DB) and sugar merchant Czarnikow have formed a trading alliance in sugar and ethanol, the companies said Monday.

Czarnikow will be "providing physical capability to Deutsche Bank on normal commercial terms," said Peter Thompson, a director of Czarnikow.

Thompson said Czarnikow will benefit from Deutsche's bigger balance sheet and improve the merchant's access to capital.The deal doesn't involve joint equity but is a "commercial venture," he said.

John Redpath, global head of oil and agricultural trading at Deutsche Bank, will manage the agreement with Czarnikow's Thompson.

"Clients will benefit from the bank's financial expertise and Czarnikow's deep involvement in the physical sugar business, and their worldwide network of producers, refiners and industrial consumers," said Redpath.

source: tradingmarkets