Cosan chairman: No plans to part ways with Shell on Raízen venture
By Marcelo Teixeira
SAO PAULO Nov 26 (Reuters) - Brazilian energy and transportation group Cosan SA Industria e Comercio has no plans to part ways with Royal Dutch Shell on their Raízen joint venture, the world's largest cane processor, Cosan Chairman Rubens Ometto said on Thursday.
Asked by Reuters to comment on a local newspaper report that Shell, the oil major, would exercise a contractual option to buy out Cosan's stake in Raízen, Ometto said the story was completely unfounded.
Brazilian financial publication Valor Econômico reported earlier this week that some changes in the managing group at Raízen have been made in recent days in preparation for Shell to take full control of the 50-50 joint venture formed in 2011.
Raízen put together Cosan's sugar and ethanol operations and Shell's fuels distribution business in Brazil.
"We have a fantastic partnership with Shell. We are very happy, Shell is happy, nothing is going to change in the current structure," said Ometto, who has engineered a flurry of acquisitions in the last decade in sugar, biofuels, gas distribution and transportation.
Besides the 50 percent share in Raízen, Cosan controls Companhia de Gas de Sao Paulo Comgas, Brazil's largest natural gas distributor, and Rumo Logística Operadora Multimodal SA, one of the largest rail companies in Latin America.
According to Ometto, Cosan and Shell are working on changes to their original contract to modify the buyout clauses.
"The contractual option that would allow Shell to have 100 percent of Raízen is being undone," he said. Continuación...