Raizen from the Shell group buys Louis Dreyfus Biosev for R$3,6 billion more shares, and expands its dominance in sugar and ethanol in Brazil

Raízen, the world's giant producer of sugar and sugarcane ethanol, signed this Monday (08/02) an agreement to buy plants from Louis Dreyfus Biosev, one of the largest companies in the sector, in a transaction that will involve payment of 3,6 billion reais and shares. Enjoy and subscribe Raízen started recruiting and selecting for job openings in SP and MS.

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According to Raízen, the purchase includes nine strategically located sugar and ethanol plants (six in the State of São Paulo, two in Mato Grosso do Sul and one in Minas Gerais), representing an installed crushing capacity of up to 32 million tons of sugarcane. The operation also includes energy cogeneration, with an export capacity of up to 1.3 GWh of electricity/year, and an area of ​​280 hectares of planted sugarcane.

Competitively positioned in the market, with operational efficiency and financial discipline, the giant ethanol producer informs that the operation strictly follows the principles of capital discipline and will not impact the company's leverage, preserving the company's credit profile, which today is "investment grade" by the three largest global rating agencies.

With the integration, Raízen, a joint venture of Cosan and Shell, will now have a total of 35 production plants, totaling an installed crushing capacity of 105 million tons of sugarcane and around 1,3 million hectares of crops, equivalent to 15% of the Brazilian planted area.

If approved by CADE, according to the agreement, Cosan and Shell will have 48,25% of Raízen, while the shareholders of Biosev, a subsidiary of Louis Dreyfus, will have the remaining 3,5%. But there is a possibility that this minority stake will be bought by Raízen in the future, according to some contractual issues.

About the transaction between ethanol producers Raízen and Bioserv

The negotiation involves the exchange of shares and payment in cash, since Biosev's assets will be integrated already net of debt. Once the transaction is completed, Biosev will become a subsidiary of the largest ethanol producer in Brazil, Raízen and its current shareholders will migrate to a holding company that will receive a minority stake in the company without voting rights. Below is the organization chart:

The shareholding percentages represented in this organization chart are mathematically rounded.
** Upon redemption of Redeemable (temporary) Shares, equity interests in Shell and Cosan will increase respectively to 48,25%.