By Brazil Stock Guide – Cosan SA (CSAN3) is weighing the entry of a new strategic partner into Raízen SA (RAIZ4), the world’s largest producer of sugar and ethanol from cane, as part of efforts to improve the unit’s capital structure amid rising debt levels.
The potential move was disclosed by Cosan Chief Executive Officer Marcelo Martins during a conference call on second-quarter results, according to a Reuters report. Raízen, a joint venture between Cosan and Shell Plc, also operates in the fuel distribution segment.
“Bringing a new partner to Raízen is an option we like,” Martins said. He added that, at this time, it does not make sense for Cosan to inject capital into the joint venture.
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