Madrid, Nov 20 - Spanish foods group Ebro Puleva said on Thursday that it has reached a preliminary agreement to sell its sugar business to Associated British Foods unit British Sugar for 526 million euros ($664 million).
In a statement, Ebro Puleva said ABF will pay 385 million euros for its Azucarera Ebro unit excluding debt, confirming comments to Reuters by a source earlier on Thursday that a deal with British Sugar was imminent.
The Spanish company will also receive 141 million euros in other compensation, mainly related to subsidies expected under European Union sugar reforms.
Separately, ABF said it has reached an "in principle" agreement with Ebro Puleva but said concluding a binding deal was not certain. A further announcement will be made in due course, the British foods group said.
Trading in the shares of Ebro Puleva had been suspended before the announcement. The shares, which last changed hands down 2.33 percent at 10.06 euros, will resume trade at 1200 GMT.