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Green light to buy German sugar producer

18 February 2009

Suiker Unie, a member of Royal Cosun, has reached agreement with Nordzucker on the acquisition of the Danisco Sugar facility in Anklam (northeast Germany). The German competition authority approved the transaction today.
The acquisition concerns an independent company with its own sugar quota, customer base, sugar factory and related bio-ethanol production plant.
 
The acquisition will strengthen Suiker Unie's position in the sugar and sugar products market in northwest Europe and provide it with more opportunities to serve international customers. The acquisition is also a promising opportunity to earn a higher return in the interests of Cosun's shareholders.
 
The acquired company will post net turnover of about € 120 million in the current financial year. It has a sugar quota of 112,000 tonnes and a workforce of about 130. It also produces about 500,000 hectolitres of bio-ethanol from sugar beet.
 
Background
Danisco A/S decided to sell its sugar division in 2008. Nordzucker acquires the greater part of the activities but has to sell the German operations of Danisco Sugar in order to have the transaction approved by the German competition authority. Completion of the transaction with Suiker Unie depends on Nordzucker's definite acquisition of Danisco Sugar.
 
Suiker Unie has a sugar quota of 805,000 tonnes, a net turnover of about € 650 million and facilities in Dinteloord, Hoogkerk, Puttershoek and Roosendaal. The acquisition will have no consequences for the number of jobs.