UPDATE 1-Cosan, Shell sign binding deal on ethanol venture

* Shell, Cosan sign binding accord on biofuels venture

* Final agreement adds Cosan energy business, BNDES debt
(Adds changes to agreement, context)

SAO PAULO, Aug 25 (BestGrowthStock) – Royal Dutch Shell Plc
(RDSa.L: ) and Brazilian sugar and ethanol giant Cosan signed on
Wednesday a binding agreement to create a global ethanol
business, looking to benefit from growing demand for biofuels.

The joint venture, with estimated annual sales of $21
billion, was modified since its initial announcement in
February to include all of Cosan’s energy generation business
and 500 million reais ($283.6 million) in debt owed to
Brazilian development bank BNDES.

Cosan (CSAN3.SA: ), the world’s largest sugar and ethanol
producer, also said in a securities filing that the initial
accord was changed to make the venture a global biofuels
provider. As a result of that, Cosan and Shell are barred from
competing with the new entity.
($1=1.763 reais)
(Reporting by Elzio Barreto; Editing by Derek Caney)

UPDATE 1-Cosan, Shell sign binding deal on ethanol venture