Brazil's Cosan approves formation of subsidiary to distribute fuel

The management board of Brazil’s sugar and ethanol group Cosan unanimously approved the incorporation of its wholly-owned fuel distribution subsidiary, Cosan Distribuidora de Combustiveis. The completion of the operation depends only on the approval by part of the shareholders which will vote on the issue at an extraordinary general meeting on November 23. The incorporation of the unit aims at simplifying the corporate structure and optimizing the business results and operations of the companies. The change will contribute to the reduction in operating costs and to a more efficient administration, Cosan said. As Cosan Distribuidora de Combustiveis is already a fully-owned subsidiary, there will be no capital increase. (November 9, 2011)