By Brazil Stock Guide – Controlling shareholders of Raízen SA (RAIZ4) are in early talks to sell a stake in the Brazilian sugar and ethanol producer to Mitsubishi Corp. (8058.T), according to people familiar with the matter cited by Bloomberg. The move is part of a plan to raise fresh capital as the company faces mounting debt.
Raízen, a joint venture between Cosan SA (CSAN3) and Shell Plc (SHEL.L), is under pressure after posting a net loss of R$1.84 billion in the first quarter of the 2025–2026 crop year. The company’s leverage has spiked, with net debt reaching 4.5 times earnings before interest, taxes, depreciation and amortization, according to XP Inc.
Cosan, controlled by billionaire Rubens Ometto, is pursuing a R$10 billion ($1.8 billion) capital injection into Raízen to ease its debt burden. The company is in divestment mode, seeking to offload assets and slow expansion as higher borrowing costs in Brazil weigh on its finances. “Cosan is evaluating potential investors for a capitalization transaction in Raízen together with Shell,” the company said in a filing on Tuesday, stressing that no binding decisions have been made.
Advisors have already been mandated: Itaú BBA is working with Cosan, Lazard Inc. (LAZ) is advising Shell, and Citigroup Inc. (C) is supporting Raízen. Shell, Raízen, Mitsubishi, Itaú and Citigroup declined to comment, while Lazard did not respond immediately.
Raízen’s shares gained as much as 3.2% in São Paulo on the news before paring gains. The stock remains down about 43% so far this year.
During an earnings call on Aug. 14, Chief Financial Officer Rafael Bergman confirmed ongoing discussions with controlling shareholders over a capital injection. A day later, Cosan Chief Executive Officer Marcelo Martins added that the company “likes” the idea of bringing in a strategic partner but does not plan to commit its own funds to Raízen.
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