Talks between Shell PLC and partner Cosan SA to rescue their Brazilian sugar and ethanol joint venture, Raizen, have collapsed. The companies failed to reach an agreement on a capital-raising plan to address the venture's ongoing debt crisis.
Cosan was reportedly unable to match the financial support pledged by Shell during the negotiations.
Shell is now expected to submit an independent proposal to creditors. This plan may result in Shell assuming majority ownership and absorbing Raizen's debt onto its own balance sheet.