SAO PAULO Dec 5 Brazil's antitrust regulator
approved a joint venture between the sugar, ethanol and fuel
distribution assets of milling group Cosan SA and
Royal Dutch Shell Plc on Wednesday.
The two companies originally announced the multi-billion
dollar union of their Brazilian assets in 2010, later dubbing
the joint venture Raizen in early 2011. In Brazil, partnerships,
mergers and acquisitions are announced long before they are
approved or denied by regulators.
The deal was approved at a session of the antitrust
governing body, Conselho Administrativo de Defesa Economica
Cosan is Brazil's biggest sugar and ethanol group and had a
strong foothold in fuel distribution before the partnership with
Shell. Cosan had purchased Exxon Mobil Corp's
Esso fuel distribution assets in Brazil in 2008.
The agreement to combine the firms' assets and resources
extends beyond Brazil.