Shell's Bold Play: A Lifeline for Brazil's Raizen

Oil giant Shell is preparing to inject more resources into Raizen, a financially troubled Brazilian sugar and ethanol company. This comes as Raizen struggles with a significant net loss and ballooning debt, according to insider sources.

Raizen's financial woes stem from heavy investments, unpredictable weather conditions, and wildfires that have disrupted production. As a result, its net debt has surged, raising concerns about its ability to sustain operations.

Shell, which co-owns Raizen with Cosan, is considering offering up to 3.5 billion reais to aid the company. Meanwhile, restructuring efforts are underway, with Raizen appointing advisors to explore strategic options and address its deteriorating credit ratings.