Raízen to Sell Caarapó Mill to Adecoagro for R$ 760 Million

Brazilian energy giant Raízen (B3: RAIZ4) has reached an agreement to sell its Caarapó mill, located in Mato Grosso do Sul, to Adecoagro Vale do Ivinhema, a subsidiary of Adecoagro S.A. (NYSE: AGRO). The transaction is valued at R$ 760 million (approximately $148 million) and will be paid entirely in cash upon the closing of the deal, subject to customary adjustments. The move represents a major step in Raízen’s ongoing capital recycling and portfolio optimization strategy.

The all-cash deal includes Raízen's owned sugarcane assets and supplier contracts linked to the Caarapó unit, which processed approximately 3.5 million tons of sugarcane during the 2025/26 harvest. For global investors looking to invest in Brazil, the divestment highlights Raízen's focus on streamlining operations and strengthening its balance sheet amid broader deleveraging efforts. Following the completion of the sale, Raízen will operate a consolidated portfolio of 23 mills with a total crushing capacity of 69 million tons per harvest.

The acquisition aligns with Adecoagro’s regional expansion strategy, as the Caarapó mill sits roughly 100 kilometers from its existing Angélica and Ivinhema clusters. The transaction remains subject to regulatory approval by Brazil's antitrust authority, CADE.

The announcement comes amid mixed trading on the local exchange. In the Brazil stock market today, the benchmark Ibovespa index hovered slightly lower at 173,714.08 (-0.06%). Among major Brazilian ADR tickers and local equities, Petrobras (PETR4) rose 2.53% to 40.9, Vale (VALE3) edged down 0.05% to 72.94, and Itaú Unibanco (ITUB4) fell 1.39% to 41.96.