Camil Alimentos, Brazil's rice-processing company, has expanded overseas with the acquisition of Rice Paraguay and a majority share in Villa Oliva Rice.

Struck through the Paraguayan company Q2PY, the deal involves shares representing 100% of Rice Paraguay and 80% of Villa Oliva Rice.

Q2PY, a company controlled by Camil's CEO Luciano Quartiero, will enter a purchase and sale agreement with Camilatam, a subsidiary of Camil, as an extension of the transaction.

Camilatam will purchase the majority shares of Villa Oliva from Q2PY for $33m.

The completion of the transaction is contingent on customary conditions, including the transfer of certain rural properties from Villa Oliva to Q2PY.

Post-reorganisation, Rice and Q2PY will lease 18,000 ha of land and the existing irrigation system to Villa Oliva for five years, with an option to renew for another five years.

Upon completion, Q2PY will control Rice and own the rural properties, while Camilatam will have a controlling interest in Villa Oliva.

Villa Oliva will lease the rural properties and own the industrial assets, agricultural equipment, and other operational assets necessary for rice production and processing.