The agribusiness conglomerate Amaggi agreed to purchase a 40% stake in FS, one of the leaders in the manufacture of corn ethanol in the country, marking its entry into a sector that has been growing rapidly and gaining ground over sugarcane biofuel, the companies told Reuters on Wednesday (14).
The operation, whose value was not disclosed, should reinforce FS’s growth plans, a pioneer in the production of biofuel exclusively from corn in Brazil, in 2017, and today has three manufacturing units in Mato Grosso, with an annual production capacity of around 2.5 billion liters of ethanol.
The partnership takes place amid the strong expansion of the corn ethanol market in Brazil in recent years. FS itself is building its fourth industrial unit in Campo Novo do Parecis (MT), which will be opened at the end of 2026, with a production capacity of approximately 600 million liters per year, bringing the company’s total to 3.2 billion liters of biofuel per year.
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Corn ethanol reached 27% of total production in the center-south region in the 2025/26 harvest, according to data from the Sugarcane and Bioenergy Industry Union (Unica), with growth plans from several companies, including competitor Inpasa.
In addition to the construction of the new plant, FS will inaugurate the first carbon capture and storage unit in September, at the Lucas do Rio Verde plant, with a storage capacity of 423 thousand tons of carbon per year. “With this, FS will become the first producer of carbon negative fuel in the world,” stated the company.
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Asked if the agreement with Amaggi was related to the need for more resources to grow, FS CEO and founder, Rafael Abud, said no.
“FS is a solid, cash-generating company, which presented the best result in its history in the last fiscal year and which was already well positioned to carry out its expansion plan, regardless of new resources”, said the executive.
Judiney Carvalho, CEO of Amaggi, stated that the acquisition of a 40% stake in FS’s share capital will involve a “combination of primary issuance”.
“In other words, issuance of new shares and entry of new resources into FS, and the purchase of shares from existing shareholders”, he revealed.
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Abud, from FS, added that the agreement provides for a contribution of resources, with a primary issuance of FS shares, worth US$100 million.
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The deal should also bring “relevant synergies” in areas such as corn origination, optimization, logistics and exports, the companies said in a statement.
For Amaggi, the operation is part of the strategy of industrialization and verticalization of operations, with the expectation that the investment in corn ethanol will bring “excellent results”, according to the CEO, Judiney Carvalho.
Amaggi, which operates in the production, trade, transport and processing of grains, joins FS’s shareholding structure together with the North American Summit Agricultural Group, in a partnership that brings together “two companies with strong synergies in the way they operate”, said Bruce Rastetter, shareholder and founder of the US group.
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Summit and Amaggi said that FS’s current board of directors will be maintained, and that Amaggi’s participation in the business will occur through the board of directors.
The deal was filed this Wednesday with the Administrative Council for Economic Defense (Cade), and its conclusion is subject to approval by Brazilian competition authorities.
