Petrobras to take stake in Guarani Sugar

SAO PAULO -- In an effort to boost its participation in the growing ethanol market, Brazilian government-controlled energy giant Petrobras (PBR, PETR4.BR) on Friday announced that it will buy a stake in the local Guarani Sugar and Ethanol Group .

Guarani is controlled by the French company Tereos.

Through its own ethanol energy group, called Petrobras Biocombustivel, Petrobras will pay 1.6 billion Brazilian reals ($920 million) over a five-year period to acquire a 45.7% stake in Guarani.

In a statement filed with the Brazilian Securities and Exchange Commission, or CVM, the companies said, "The association will create a Brazilian company that is well positioned to play a key role in consolidation of the ethanol market."

source: marketwatch