Raízen Rescue Talks Intensify After Lula Meeting as Creditors Seek Up to R$25 Billion

Overview

• Cosan and Shell are in advanced talks with funds managed by BTG Pactual on a deal that includes buying a stake in Raízen’s fuel distribution business for about R$5.5 billion.
• Negotiators have discussed converting roughly 35% of Raízen’s debt into equity alongside a R$3–5 billion raise from current shareholders.
• A coordinated group of bondholder and bank creditors asked the owners to inject up to R$25 billion to stabilize the company.
• Lula met on Feb. 18 with Cosan, Shell, BTG and senior officials; Petrobras later said it is not studying acquisitions of Raízen assets, while BNDES has taken a cautious posture.
• Raízen is pursuing asset disposals, with Mercuria reported near a US$1 billion purchase of Argentine operations, and a meeting with creditors was expected this week.