By Brazil Stock Guide – Raízen (B3: RAIZ4) has agreed to sell its Caarapó sugar and ethanol mill in Brazil’s Mato Grosso do Sul state to Adecoagro for an estimated R$760 million, as the company moves to streamline its operations and improve returns from its agro-industrial portfolio.
The transaction includes the mill itself, Raízen-owned sugarcane production and supply agreements with farmers linked to the facility. The Caarapó operation processed approximately 3.5 million metric tons of sugarcane during the 2025/26 crop season.
Adecoagro Vale do Ivinhema, a subsidiary of agricultural and renewable-energy producer Adecoagro, will pay the full amount in cash upon completion of the deal. The final price remains subject to customary closing adjustments.
Raízen said the divestment was aligned with its strategy of optimizing its asset portfolio, simplifying operations and capturing efficiencies, with a particular focus on improving the profitability of its sugar, ethanol and bioenergy business.
Following completion of the transaction, Raízen will operate 23 mills with combined installed crushing capacity of approximately 69 million metric tons of sugarcane per crop season.
The sale further concentrates Raízen’s production base while reducing the number of assets under management, as the company seeks to prioritize its most competitive operations and strengthen capital allocation discipline.
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