French agricultural group Tereos announced on Wednesday it has struck a USD-202-million (EUR 193.3m) deal to buy the minority stake it does not already own in Brazilian sugar and ethanol producer Guarani SA.

In particular, Tereos has agreed to acquire the 45.97% interest in Guarani held by a subsidiary of Petroleo Brasileiro SA (SAO:PETR3), or Petrobras. The latter has decided to exit Guarani in order to focus on its core business of oil and natural gas exploration and production.

Guarani owns and operates seven sugar and ethanol production facilities and two refineries in the Brazilian state of Sao Paulo. In 2016/17 crop, the company transformed nearly 20 million tonnes of sugarcane to produce some 1.6 million tonnes of sugar, more than 630 million litres of ethanol and feed over 1 GWh of power into the grid.

Following completion of the deal, the Brazilian business will be renamed Tereos Acucar e Energia Brasil.