A Raizen ethanol facility in Piracicaba, Brazil. Raizen says it controls 1.3 million hectares of agricultural land (Photo: Victor Moriyama/Bloomberg)Bloomberg | 2 September 2025Raizen owners said in talks to sell stake to Mitsubishi
By Dayanne Sousa, Cristiane Lucchesi, and Rachel Gamarski
Brazil sugar and ethanol producer Raizen SA’s controlling shareholders are in talks to sell a stake to Mitsubishi Corp. as part of a plan to raise capital, according to people familiar with the matter.
The conversations are in an early stage, and Mitsubishi is still mulling whether to make a proposal for shares of Raizen, the people said, asking not to be identified because negotiations are private. Raizen is a joint venture between Brazilian holding company Cosan SA and London-based oil producer Shell PLC. Cosan is aiming for a capital injection of 10 billion reais ($1.8 billion) for Raizen to reduce its soaring debt, the people said.
Banco Itau BBA is working with Cosan, Lazard Inc. is working with Shell and Citigroup Inc. is working with Raizen.
Cosan “has been evaluating potential investors for a capitalization transaction in Raízen together with Shell,” the company said in a filing Tuesday that noted there are no approvals or binding events at this time.
Shell, Raizen and Mitsubishi declined to comment, as did Itau and Citigroup. Lazard didn’t immediately reply to a request for comment.
Raizen reported a net loss of 1.84 billion reais in the first quarter, with debt rising relative to earnings as the company borrowed to replace supplier agreements. Net debt reached 4.5 times earnings before interest, tax, depreciation and amortization, according to XP Inc.
Shares of Raizen climbed as much as 3.2% in Sao Paulo on the news, before erasing gains. The company’s shares are still down 43% this year.
Chief Financial Officer Rafael Bergman said on an Aug. 14 conference call that Raizen is in active talks with its controlling shareholders for a capital injection.
Its co-parent Cosan, controlled by billionaire Rubens Ometto, has been in divesting mode, with a plan to sell assets and slow down expansion as higher borrowing costs in Brazil rattle its finances.
Cosan doesn’t plan to inject its own capital into Raizen but “likes” the alternative of bringing in a strategic partner, Chief Executive Officer Marcelo Martins said on an Aug. 15 conference call.
