Raízen, owned by Cosan and Shell, is also negotiating sale of three other units
10/03/2025
Brazilian sugarcane processing company Grupo Colorado, the owner of two mills in Brazil’s Center-South region, has made an offer for Raízen’s Usina Continental, two sources familiar with the matter told Valor. The sources requested anonymity. Raízen declined to comment. Valor reached out to Colorado but did not receive a response before publication.
Located in Colômbia, a city in the far north of São Paulo near the Triângulo Mineiro region, the Continental mill has the capacity to process more than 2.5 million tonnes of sugarcane per harvest.
According to the sources, this is the deal closest to being finalized among the Raízen mills currently under negotiation. One source added that the company, owned by Cosan and Shell, has also begun discussions to sell its mills in Jataí (Goiás), Lagoa da Prata (Minas Gerais), and Igarapava (São Paulo). Another source said that the Jataí mill had received a proposal from Atvos, which was not accepted. Atvos declined to comment.
Continental has been on the market at least since June, as Valor previously reported. At that time, Raízen was still negotiating the sale of assets from Santa Elisa, in Sertãozinho (São Paulo), as well as Rio Brilhante and Passatempo, in Mato Grosso do Sul, which were eventually sold.
If confirmed, the sale of Continental would be the fourth unit Raízen acquired from Biosev in 2021 to be divested under its current asset disposal plan. In the case of the Santa Elisa mill, only the sugarcane fields were sold to a group of six industry companies, while the processing facility was put into hibernation. The mills in Mato Grosso do Sul were sold to Cocal.
The sale of these three assets has generated R$1.345 billion for Raízen. In the Santa Elisa fields transaction, sugarcane production capacity was sold at a multiple of $46 per tonne of raw material. In the sale of the mills located in Mato Grosso do Sul to Cocal—which included both industrial assets and crops—the multiple was $40 per tonne.
Selling mills has proven to be a more immediate way for Raízen to raise cash and reduce debt while its corporate restructuring remains unresolved. Pressured by high leverage, Raízen’s shares have fallen sharply, closing the Thursday (2) session at a record low of R$1.01. Cosan has already indicated it is willing to be diluted in the business.
The company reportedly discussed a potential capital increase in Raízen with Shell, but there were no developments. A source close to Shell said the recent decline in interest from major oil companies in clean energy reduces the likelihood of such a capital injection.
In its most recent financial statement, Raízen disclosed that its two partners were also exploring alternatives with a third investor. Bloomberg reported talks with Japanese firms Mitsui and Mitsubishi, while Valor’s business website Pipeline revealed interest from BTG Pactual and Itaúsa.
*By Camila Souza Ramos, Globo Rural — São Paulo
Source: Valor International
https://valorinternational.globo.com/