This paper revisits the global landscape of mergers and acquisitions (M&A) and foreign direct investment (FDI) activity in the world sugar industry, updating ISO studies released in 2016 and 2012, and extending the ISO’s long-term commitment to monitoring these activities since a first paper was written on cross-border investments in the world sugar industry in 2007. This study provides a comprehensive stocktake of global M&A/FDI activities since 2016, looking at drivers, key players, as well as details of transactions that have occurred.
The ISO’s 2016 study concluded that since 2011, falling world sugar prices and depressed margins had tended to stymie M&A/FDI activity. The period which followed, between 2016-2018, largely continued this trend with few exceptions. More recently, the period since 2020 has seen more activity, helped by a period of higher world sugar prices and improved margins. However, despite a recovery in world sugar prices, the global economy entered a period of pronounced uncertainty, added to by the COVID-19 pandemic, and subsequent inflationary pressures, as well as energy and security concerns.
In Brazil, a consolidation movement, largely driven by local companies, is gaining momentum. The focus for now remains on optimising the existing industry, rather than engaging in new-built or greenfield operations. In Europe, with the end of the production quota regime, operational capacities have had to be restructured and optimised resulting in a number of sugar plant closures. In Africa, M&A hit a hiatus, with major drivers being Ethiopia’s privatisation and Egypt’s quest for self-sufficiency. In Asia and Oceania, capacity growth has also been limited. A significant focus has also been on divestments, with a number of sales and closures identified.
The long period of low world sugar prices, prior to 2020, also prompted divestment and a reorganization of priorities among multinational traders. Significant activity has occurred within the sugar marketing and distribution space, with developments altering the concentration of the world sugar trade.
Introduction
1 Overview
2 Cane Sugar Companies
BP Bunge Bioenergia
Companhia Mineira de Açúcar e Álcool (CMAA)
Compañia Azucarera Los Balcanes
Ipiranga Agroindustrial Group
Jalles Machado SA
Mitr Phol Group
Pantaleón Group
Pedra Agroindustrial
Raízen SA
São Martinho SA
Universal Robina Corporation
Usina Batatais
US Sugar
3 Beet Sugar Companies
AB Sugar
Cristal Union Group
Nordzucker AG
Michigan Sugar Company
Mitsui / Dai-Nippon Meiji / Nippon Beet
Pfeifer & Langen
Tereos Group
4 Refiners and Other Companies
Albioma
Alteo Agri Limited
FKS Group
Lone Star Funds
Magister Investments (Mauritius)
MSM Malaysia Holdings Berhad
5 Trade House Activity
Archer Daniels Midland
Bunge
Cargill
Louis Dreyfus Company
Czarnikow
ED&F Man
Olam International
RCMA Group
6 Divestments
AB Sugar
Astarta-Kyiv
Biosev SA
Bundaberg Sugar Limited
Cristal Union Group
Hrvatska Industrija Secera (HIS)
Fiji Sugar Corporation
Hawaiian Commercial & Sugar Company
Hellenic Sugar
J Wray & Nephew Limited
Mackay Sugar Limited
Mawana Sugars
Medine Group
MSF Sugar
Petrobrás Biocombustível
Pfeifer & Langen
Raízen SA
São Martinho SA / Cosan
Seprod Group
Südzucker AG
Tongaat Hulett
Usina Santa Adélia
Viet Nam Sugarcane and Sugar Corporation
VIRO Secerana Virovitica
7 Sugar Marketing/Distribution
Cargill
Copersucar
RAW - Raízen/Wilmar
Südzucker / ED&F Man
Tereos Commodities
Conclusions