23 November 2016
Raizen is a 50:50 joint venture (JV)
Raízen is the world’s largest individual producer
of sugar cane, producing
more than four million tons of sugar,
more than two billion litres of ethanol
and 2.2 gigawatt hours of cogenerated energy in 2015.
It also operates a network of more than
5,800 Shell-branded service stations in the country.
The combination of Shell and Cosan’s retail experience
and technical expertise have contributed to
Raizen’s strong financial and operational performance
since the venture was established.
DETAILS
Shell and Cosan have reached an agreement
to strengthen
the Raízen joint venture in Brazil,
through a change in its contractual structure.
The partners have agreed to remove
the mutual time-bound buyout options included in
the original joint venture agreement,
signed in June 2011, and in doing so
have transformed Raízen
from a temporary to a permanent joint venture.
John Abbott,
Shell’s Downstream Director
“Low-carbon, sustainable biofuels
play an important role today and will be required
long term for heavy duty and long distance transport.
We are pleased with Raízen’s strong performance.
This commitment reaffirms the stability
of Shell and Cosan’s partnership, and
our shared view of the long term objectives
and value of the business.”
Cosan CEO
“Transforming Raízen into a permanent joint venture
strengthens the partnership we built with Shell
over the last five years, while paving the way
to continue our successful journey in Brazil.
Our partnership with Shell is instrumental to
being recognized for excellence in the development,
production and marketing of sustainable energy.”
Notes to editors
The changes to the JV agreement remove
the time-bound options for Shell and Cosan
to buyout each other’s shares in the JV from 2021
and replace them with event triggered options.
Event triggered options are a common feature
in JV agreements and are designed to address
specific risks that may arise during the life of the JV.
They have been added to provide each party
with the comfort that Raizen will continue
its strong performance to date and
that the two shareholders are aligned
in their long term objectives with respect to the JV.
Enquiries
Shell Brazil Media Relations +55 21 3984 7226
Shell International Media Relations +44 20 7934 5550
Shell US Media Relations +1 713 241 4544
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