A proposal to split Brazil’s largest sugar and ethanol producer, Raízen, is facing resistance from creditors, according to sources cited by Reuters.
The company, a joint venture between Shell and Cosan, recently reported a quarterly net loss of 15.6 billion reais, raising fresh concerns about its financial health. As the world’s largest sugar producer, Raízen plays a key role in both the sugar and ethanol markets.
BTG Pactual, which is linked to Cosan’s controlling group, has suggested breaking up the company as a way to bring in new investors and strengthen its balance sheet. However, creditors are said to oppose the move, preferring measures that would allow for a faster financial recovery.
The issue has also drawn attention at the highest level. Luiz Inácio Lula da Silva has discussed Raízen’s situation with government officials, though no concrete steps have been announced so far.
At the same time, the company is under pressure to secure more than 20 billion reais in fresh capital to maintain operations, highlighting the scale of the financial challenge it faces.
