Raízen moves to renegotiate $25 bn tax disputes while preparing $7 bn Argentine asset sale

Raízen disclosed that it faces roughly R$ 25 billion in tax disputes, split between federal claims (including PIS/Cofins credits and income tax) and state ICMS demands. Part of the liabilities are being contested administratively, with a smaller portion in court. Shareholders Cosan and Shell have pledged to cover only R$ 7.2 billion of pre‑2011 obligations, leaving about R$ 17.4 billion still exposed. The company has made the federal tax repactuation a prerequisite for completing its extrajudicial restructuring of about R$ 65 billion of debt, which it aims to finalize by March 2027, with a possible six‑month extension if the tax negotiations remain pending.

In parallel, Raízen is close to selling its Argentine operations – a refinery, a lubricants plant and a Shell‑branded fuel station network – for around R$ 7 billion to a consortium led by Mercuria Energy Group. The deal, expected to be signed within days and closed within three months, is intended to bolster cash flow amid the restructuring. Raízen’s net debt currently stands at 5.3 times EBITDA, and the restructuring plan includes a R$ 3.5 billion cash injection from Shell and a further R$ 500 million from a family‑office linked to Cosan’s controlling shareholder.