Bunge confirms hopes to spin off Brazilian sugarcane unit in IPO

In Brazil, Reuters reports that Bunge confirmed it is interested to spin off its sugarcane and ethanol unit as an IPO but is testing the proverbial waters before taking a final decision by gauging the market valuation and investor appetite. The global sugar industry is going into a slump due to low sugar prices but Brazil’s focus on ethanol thanks to the recently approved RenovaBio program will create more medium-term demand for ethanol which could make the potential IPO attractive.