Petrobras considers potential investment in Raizen to re-enter ethanol market - report

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Petrobras (NYSE:PBR [https://seekingalpha.com/symbol/PBR]) is evaluating an investment in Brazilian sugar and ethanol producer Raizen, as part of its strategy to re-enter the ethanol market, according to a report by _O Globo_ published Saturday, citing unnamed sources.

The move points to a potential reversal from Petrobras' (NYSE:PBR [https://seekingalpha.com/symbol/PBR]) 2017-21 strategic plan, which outlined a complete exit from biofuel production, while Raizen is open to bringing on a new partner as it navigates financial headwinds, according to the report [https://bioenergytimes.com/brazils-petrobras-weighs-potential-investment-in-raizen-to-re-enter-ethanol-market/].

_O Globo_ said Petrobras (PBR [https://seekingalpha.com/symbol/PBR]) could make a decision by year-end and is studying several options, including joining Raizen as a partner or buying assets from the company.

Raizen, the world's largest sugar maker and a leading ethanol producer, is controlled by Shell (SHEL [https://seekingalpha.com/symbol/SHEL]) and Brazilian conglomerate Cosan (CSAN [https://seekingalpha.com/symbol/CSAN]).

Raizen last week acknowledged the potential entry of a new shareholder following disappointing financial results that sent its shares to a record low in Brazil.

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