Nordzucker acquires majority stake in Mackay Sugar
Nordzucker has successfully completed the acquisition of a 70 percent majority stake in Mackay Sugar Limited (MSL), Australia's second-largest sugar producer.
In February of this year, Nordzucker signed an agreement with MSL to acquire 70 percent of the share capital. The closing of the transaction was subject to certain conditions precedent, in particular the sale of the unprofitable sugar factory in Mossman and the approval of the MSL shareholders. On July 29, 2019, the shareholders at an extraordinary shareholders' meeting last expressed their support for the transaction with a clear majority.
Dr. Lars Gorissen, CEO of Nordzucker AG, said: "I am delighted that we have successfully completed the transaction. The negotiations with MSL and the discussions with the owners were very constructive and trusting. I am confident that together we can lead the company into a successful future and that MSL will make a positive contribution to Nordzucker Group's earnings in the medium term".
Jochen-Johannes Juister, Chairman of the Supervisory Board of Nordzucker AG, adds: "The Supervisory Board and the owners of the company expressly welcome this move to Australia. It represents an important milestone in the history of Nordzucker AG and for the future of the company".
Entry into sugar cane business increases competitiveness
Nordzucker is investing in the three plants Marian, Farleigh and Racecourse, all of which are located in the immediate vicinity of Mackay. The aim is to significantly increase the availability of the factories, which have an annual production capacity of around 700,000 tonnes of sugar, again.
"Thanks to the cost structures, cane sugar production is profitable even at lower sugar prices and the infrastructure in the Mackay region is optimal. With MSL, we are gaining access not only to the stable Australian sugar market but also to the world's largest growth market in Southeast Asia," says Gorissen, stressing that "Nordzucker is clearly focusing on sugar - from beet and cane.
Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.
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