Analysts Like CNAA, but Question Pricing
Analysts like the acquisition of Brazil’s Companhia Nacional de Acucar e Alcool (CNAA) by BP, although some expressed concerns over the price of the acquisition. BP says it will pay $680m for an 83% stake in CNAA including the assumption of the company’s long term debt. CNAA produces ethanol from two mills in the states of Goias and Minas Gerais. A third mill is under development. BP does not disclose how much debt CNAA has, although local press reported that as of end-of-year 2009 it carried BRL1bn. A Brazil-based M&A banker away from the deal says that CNAA has been seeking a buyer since 2008 and...
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