FERRUZZI DEAL WITH CPC WORTH 630 MLN DLRS
The Ferruzzi Group's holding company
Agricola Finanziara SpA will pay 630 mln dlrs for the European
corn wet milling business of CPC International Inc under the
agreement reached in principle between the two companies, a
statement by Ferruzzi released by its Brussels office said.
    When CPC announced the agreement yesterday in New York, it
said only that the price would be in excess of 600 mln dlrs.
    Ferruzzi said the deal is subject to agreement on several
clauses of the contract and needs government authorisations.
    It said the deal would involve 13 starch factories
employing about 5,000 people in eight European Community
countries plus facilities and commercial operations in other EC
states.
    The factories have a capacity to produce the equivalent of
1.6 mln tonnes of starch in starch and by-products a year, or
about one third of EC production, from about 2.7 mln tonnes of
cereals.
    Ferruzzi said the acquisition of these assets would extend
its presence in the European agro-industrial industry both
geographically and in terms of products.
    It said it is already the principal EC producer of sugar
and of soya oil and cake, and the major cereal trader.
    It noted that EC output of isoglucose is subject to maximum
quotas, of which CPC currently holds a 25 pct share, and said
it foresaw an increase in other industrial uses of starch in
the future, notably in the production of ethanol for fuel.
    Raul Gardini, president of the Ferruzzi Group, said the
present management of the CPC milling business will be asked to
remain in their posts.
 REUTER
