Cosan Ends Plan to Buy $388 Million Stake in Rail CompanyLucia Kassai
Cosan SA Industria & Comercio abandoned plans to pay 896.5 million reais ($388 million) for a 5.67 percent stake in Latin America’s largest railroad company, a setback for its plan to focus on infrastructure.
Talks to acquire a stake in All America Latina Logistica SA “ended without the transaction coming to fruition,” the Sao Paulo-based company said in a statement today. The company agreed in February 2012 to buy 39 million shares to be part of the group that controls Curitiba, Brazil-based All America.
Cosan fell 2.4 percent to 40.60 reais at the close in Sao Paulo. All America rose 8.3 percent to 9.51 reais, the most since May 2009.
Cosan, a producer of sugar and ethanol, has expanded into logistics and fuel distribution through 10 acquisitions in the past five years. Brazilian state-worker pension funds opposed the sale to Cosan, newspaper Folha de S.Paulo reported in September.
Cosan, founded by Brazilian billionaire Rubens Ometto, agreed in 2009 to invest 1.2 billion reais in All America in return for transport rights.