My watch list
my.yumda.de  
Login  

Nordzucker agrees majority stake in Mackay Sugar Limited

Acquisition of 70 percent majority stake in Australian sugar producer Mackay Sugar

12-Feb-2019

Nordzucker and Mackay Sugar Limited have contractually agreed that Nordzucker will acquire a 70 per cent majority stake in Australia's second-largest sugar producer. Nordzucker is thus building up production capacities outside Europe and consistently pursuing its strategy of focusing on sugar production from sugar beet and sugar cane. The transaction is subject to the approval of Mackay Sugar's shareholders and other conditions precedent such as the sale of one of the four sugar factories.

Nordzucker will contribute equity capital in the amount of 60 million Australian dollars (AUD) (currently around EUR 38 million ) for the 70 percent stake in the share capital. Mackay Sugar will also receive an additional shareholder loan of up to AUD 60 million. The equity and debt capital contribution will mainly be used for maintenance and capital expenditures in order to significantly increase the availability of the three remaining plants with an annual production capacity of about 700,000 tonnes of sugar over the next few years and make the company sustainably profitable..

 Investment in cane sugar improves competitiveness

"The growth in sugar is taking place in regions outside the EU. By acquiring a stake in Mackay Sugar, we can secure a substantial share of the Australian market and gain access to the Southeast Asian market," says Dr. Lars Gorissen, Chairman of the Executive Board, and explains: "Cane sugar production is profitable even at lower sugar prices due to cost structures. We are convinced that Mackay Sugar with its investments in the plants will be able to make in the medium term a sustained positive contribution to Group earnings.” 

The Chairman of the Supervisory Board of Nordzucker AG, Jochen Johannes Juister, explains: "Like Nordzucker, Mackay Sugar is owned by its growers. Australia is a politically stable country and the local infrastructure is optimal" and emphasizes: "The Supervisory Board is convinced that the entry into cane sugar production and the investment in Mackay under the conditions set is a strategically correct step to make Nordzucker stable and competitive in the long term".

Facts, background information, dossiers
  • acquisitions
  • sugar market
  • investments
More about Nordzucker
  • News

    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 t ... more

    Nordzucker starts comprehensive transformation process

    Nordzucker focuses entirely on sugar - in its core market of Europe and globally. Due to the significantly more volatile and highly competitive market environment, a comprehensive internal transformation process is being initiated with the aim of stabilizing the company in low-price phases ... more

  • Companies

    Nordzucker AG

    Sugar beet is the natural resource from which sugar has been extracted in Europe for more than 200 years. This is the long tradition behind Nordzucker, the company that has been producing sugar of the highest quality since 1838, and is now Europe's second largest sugar producer. With around ... more

Your browser is not current. Microsoft Internet Explorer 6.0 does not support some functions on Chemie.DE