Cosan and its partner BTG Pactual, however, advocated a different rescue blueprint involving segmentation of Raízen’s fuel distribution and bioenergy businesses into separate companies. Their proposal called for a R$ 3 billion capital injection spread across Shell, Cosan, Rubens Ometto’s Aguassanta holding, and minority investors, alongside a debt-to-equity swap and subsequent private equity involvement from BTG specifically in the fuel distribution unit. BTG appears interested in gaining control over the distribution arm should a split occur.
Shell has rejected this business division due to its complexity and protracted execution timeframe, maintaining that the company’s restructuring hinges on an integrated recapitalization. Attempts by Shell to onboard new external investors failed after a disclosed data room process, leaving negotiations confined to current shareholders and creditor banks, including major international institutions such as Bank of America, Citigroup, J.P. Morgan, and Mitsubishi UFJ. These creditors are expected to convert approximately 30% of their debt instruments into equity.
The stalemate prolongs uncertainty about Raízen’s future ownership structure and operational strategy, with significant implications for market positioning in biofuels and fuel retail across Latin America. The resolution timeline remains open as both sides evaluate next steps under creditor supervision.
This article was curated and published as part of our South American energy market coverage.
