Brazilian sugarcane processor Raizen has announced an agreement to sell its Rio Brilhante and Passa Tempo mills to Cocal Agroindustria for 1.54 billion reais ($284.07 million), according to a securities filing made on Friday.
This transaction is part of Raizen’s broader divestment strategy, as the company, a joint venture between the conglomerate Cosan and Shell, seeks to address operational hurdles and a high debt burden.
Of the total deal value, 1.3 billion reais reflects the price for the two mills, while the remaining 218 million reais corresponds to this year’s off-season maintenance investments, which Cocal Agroindustria will cover.
Following the completion of the sale, Raizen will continue to operate 25 mills, with a combined crushing capacity of 75 million metric tons per harvest, the filing stated.
