(Adds comments)
SAO PAULO, Dec 23 (Reuters) - Brazilian antitrust watchdogCade is reviewing a proposed tie-up between sugar and ethanolproducer Raizen Energia SA and trader Wilmar International Ltd, as prices for the commodity recover amid tighteningglobal supply.
The proposed joint venture aims to export a type ofBrazilian sugar known as VHP, a filing by Cade in thegovernment's official gazzette on Wednesday said.
Cade cited the companies as saying the supply relationshipbetween RaÃÂzen and Wilmar would be strengthened by the tie-up.
Morgan Stanley & Co analysts slightly lowered their forecastfor a global deficit of sugar supplies for the annual seasonending in 2016. The revision, though small, stands in contrastto wave of upward revisions to experts' deficit projections inrecent weeks.
Sugar prices have risen in recent months on expectations oftightening supplies, ending years of surpluses.
RaÃÂzen, a joint venture between Cosan SA andAnglo-Dutch Royal Dutch Shell Plc, declined to comment.
Cosan shares rose 0.1 percent in São Paulo trading.
Wilmar representatives in Brazil could not immediately bereached for comment. (Reporting by Roberto Samora; Writing by Tatiana Bautzer andGuillermo Parra-Bernal; editing by Grant McCool)