Raizen is a 50:50 joint venture (JV) between Shell and Cosan. 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.

Raízen is the world’s largest individual producer of sugar cane, producing more than four million tons of sugar, more than two billion liters of ethanol (528 million gallons US) 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.