Petrobras exploring investment in Raízen

In Brazil, O Globo reports Petrobras has on the table to invest in Raízen, a joint venture between Cosan and Shell. According to industry sources, the state-owned company analyzes several possibilities, such as becoming a partner of the company or buying assets, which would mark its return to the ethanol sector, a strategy already announced by Magda Chambriard. The idea, these sources reveal, is that a final decision will be made by the end of this year.

According to the sources heard by GLOBO, the idea of Petrobras is to become a relevant actor in the ethanol market at this first moment. The internal discussion in the company is precisely how could you enter Raízen without hurting the non-competition clause with Vibra (the old BR Distribuidora) until 2029 in the distribution sector.

Therefore, there are several options on the trading desk, such as an asset separation or a specific agreement regarding asset management. “But there is still no decision made, as there are several options on the table, which also includes studies of other companies or the purchase of isolated assets of Raízen,” said one of the sources heard by GLOBO.

For an analyst who did not want to identify himself, the entry of Petrobras in Raízen could be a first step towards his return to the distribution sector. Last week, Magda said he wanted open doors to return to the segment:

“Anything necessary, whether in B2B (sale from company to company), to the large consumer, whether it is a sale to the final consumer in fuel stations, or in the direction of gas, we want doors open to opt for the best possible value aggregation.”