Railroad company ALL America Latina Logistica gained the most among major Brazilian stocks after its sale to Rumo Logistica SA was approved by the country’s antitrust regulator.
ALL rallied 14 percent to 5.10 reais at the close of trading in Sao Paulo, the best performer on the Ibovespa benchmark, which lost 0.6 percent. Rumo, the logistics unit of sugar-cane processor Cosan SA Industria e Comercio, agreed last year to buy ALL for about $3 billion in an all-stock deal. Antitrust regulator Cade said on Wednesday that the transaction can go through as long as the new freight company continues to offer services to Cosan’s competitors.
“The deal’s approval is the main trigger for ALL in the short/medium term,” Roberto Altenhofen, an analyst at investment advisory firm Empiricus Research, wrote in an e-mailed note to clients. “The new company arising from the deal, Cosan Logistica, will probably boost investments that have been flattened under ALL.”
Cosan Chief Executive Officer Marcos Lutz said after Cade’s decision was announced that the merger will allow the company to maintain its expansion plans.