Brazilian biofuels maker Raizen SA is selling a portion of its fuel distribution business while granting Shell Plc a meaningful stake in the profitable unit. The deal is part of a broader restructuring where creditors will own over 80% after a debt-to-equity conversion. Shell will hold less than 20% in the fuel distribution company and gain rights to the Shell-branded stations. A "poison pill" clause prevents any shareholder from exceeding 25% without a tender offer.
Raizen's fuel distribution is Brazil's largest, benefiting from higher diesel prices post-Iran war, while its sugar and ethanol side faces headwinds. The company recently settled $2.5 billion in tax liabilities and reported positive cash generation in Q2. Lorival Luz will lead the fuel unit as CEO, with Sam Aguirre as chairman.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing