Cosan says no talks to sell full stake in Rumo

Brazilian conglomerate Cosan SA has clarified that it is not pursuing the sale of its full stake in railway operator Rumo SA, despite ongoing negotiations to divest a 30% stake in the company. The potential transaction, being discussed with Ultrapar Participações SA and infrastructure fund Perfin, aims to address Cosan's capital-raising needs amid financial pressures in its sugar and ethanol business, Raízen SA. While the deal remains in early stages with key terms unresolved, it would not involve a complete exit from Rumo, which Cosan currently controls.

The proposed partial sale aligns with broader efforts to strengthen Cosan's balance sheet, including asset divestments and a potential initial public offering (IPO) of its Compass energy unit. BTG Pactual, which injected capital into Cosan in late 2025, has advocated for strategic reductions in debt, particularly in Raízen, where high leverage and operational challenges have prompted credit downgrades. A Rumo stake sale could provide liquidity but is not urgent if the Compass IPO proceeds smoothly.

For Ultrapar, acquiring a 30% stake would expand its logistics footprint, complementing its waterway operations and solidifying its role in Brazil's grain export corridors. Perfin is expected to hold a smaller share of the stake, with final approval dependent on alignment among all parties. Investors are monitoring how the deal, if finalized, impacts Cosan's debt trajectory and Rumo's ownership structure, though no immediate plans exist to sell the full stake.