Raizen to sell Argentina downstream business to Mercuria for $1.42 billion (updated)

Cosan

04/06/2026 13:48

Adds details in paragraph 3, context in paragraphs 4-7

    BRASILIA, June 4 (Reuters) - Brazilian sugar and ethanol producer Raizen RAIZ4.SA said on Thursday its subsidiary Raizen Energia had agreed to sell its downstream operations in Argentina to Mercuria Energy Group for $1.42 billion.
In a securities filing, Raizen said the transaction value comprised a cash payment to be made at closing, subject to customary adjustments, including changes in working capital and net debt, among other provisions set out in the agreement. 
The buyer will also assume the debt of Raizen Argentina S.A.U., it added.
"The net proceeds from the transaction will be used to manage the company's capital structure," Raizen said.
The company, a joint venture between oil major Shell SHEL.L and Brazilian conglomerate Cosan CSAN3.SA, has been seeking ways to address its heavy debt burden, pressured by high capital spending, adverse weather and wildfires that have hit sugarcane crops.
The deal with Mercuria is aligned with its strategy of optimizing its asset portfolio, simplifying its operating structure and maintaining disciplined capital allocation, with a focus on priority markets and geographies, it said in the filing.
On Wednesday, the company's creditors began evaluating Raizen's final proposal for an out-of-court restructuring covering around 65 billion reais ($12.84 billion) of debt, the largest such deal in Brazil's history. 
Meetings with bondholders are due to end on Monday.
($1 = 5.0640 reais)

 (Reporting by Marcela Ayres; Editing by Tomasz Janowski and Jan Harvey)
 ((marcela.ayres@thomsonreuters.com; +55 11 5047-2444;))