Brazil's antitrust watchdog Cade has approved the 315mn-real (US$142mn) takeover of sugar and biofuel producer Santa Cruz by agribusiness group São Martinho.

The decision confirms São Martinho's purchase of an additional 56% stake in the São Paulo-based company, according to federal gazette Diário Oficial da União.

São Martinho now holds 92.14% of Santa Cruz's capital stock.

Under the terms of the deal, São Martinho will sell its 34% interest in farming group Agro Pecuária Boa Vista to Luiz Ometto Participações for 196mn reais.

São Martinho operates two sugar and ethanol mills in São Paulo state and one in the state of Goiás.

The company also produces ribonucleic acid at its Omtek production plant in Iracemápolis, São Paulo state.