The Brazilian unit of U.S. grain trader Cargill has submitted a binding offer to acquire Granol's soy assets, which includes crushing and biodiesel plants in three cities, aiming to expand its biodiesel production and operations in Brazil. Upon successful completion of the transaction, indicates potential consolidation within the local soy crushing sector, Cargill would possess nine soy crushing plants in Brazil, positioning them alongside Bunge in terms of capacity.

The Brazilian unit of U.S. grain trader Cargill announced on Monday its intent to acquire assets of the privately-owned soy crusher, Granol. The binding offer, if approved, would see Cargill taking over Granol's crushing and biodiesel plants located in the cities of Anapolis, Porto Nacional, and Cachoeira do Sul, along with four warehouses in the states of Goias and Tocantins.

The acquisition is aimed at amplifying Cargill’s biodiesel production and expanding its presence in Brazil, the world’s leading soy producer. Upon successful completion of the deal, Cargill would possess nine soy crushing plants in Brazil, positioning them alongside Bunge in terms of capacity.

This move by Cargill indicates potential consolidation within the local soy crushing sector, especially given the current abundance of soybean supplies following a remarkable harvest season. Approximately 68% of Brazil’s biodiesel originates from soybeans, with the national biodiesel output for this year projected at 7 billion liters.