Cosan re-evaluates asset sales after election results

Brazilian conglomerate Cosan is re-evaluating its planned asset divestments, according to people familiar with the matter. The review follows a halving of the company's debt over the past year and improving market conditions in Brazil, driven by market expectations around the presidential election second round scheduled for October 25, 2026.

Among the transactions under review is the potential sale of part of Cosan's stake in logistics operator Rumo. People familiar with the situation stated that some received bids valued the stake about 30% below Rumo's current market valuation. In June 2026, Cosan hired BTG Pactual as a financial advisor to assess alternatives for that holding. Other divestments undergoing review include a potential follow-on share offering by gas unit Compass Gás e Energia and the disposal of a stake in lubricant maker Moove, which could occur via public markets or privately.

Cosan shares rose 24% this week, marking the third-largest gain among the 76 constituent stocks of Brazil's benchmark Ibovespa index, which gained 6.9% while the Brazilian real appreciated 4.8% against the US dollar. The conglomerate previously reduced its leverage through measures including rural property sales and the initial public offering of Compass.

The group's financial flexibility improved following a capital injection of BRL 10 billion (about $2 billion) anchored by BTG Pactual Holding and the Perfin Infra fund late last year. Cosan has also implemented cost cuts, including the elimination of about 100 jobs, according to the sources. Cosan did not immediately respond to a request for comment.