RIO DE JANEIRO (Bloomberg) — Cosan SA Industria e Comercio, the world's biggest sugar-cane processor and a subsidiary of bermuda-based Cosan Ltd., agreed to buy more than 1,500 Brazilian service stations and other assets from Exxon Mobil Corp. for $826 million as demand for ethanol rises.

The acquisition of Esso Brasileira de Petroleo Ltda. will make Cosan the fifth-largest fuels distributor in Brazil, with 7.2 percent market share, Piracicaba, Brazil-based Cosan said today in a statement. Esso Brasileira also offers aviation-fuel services and owns a lubricant plant in Rio de Janeiro and distribution terminals.

Cosan is seeking to sell ethanol directly to consumers as Brazil's service-station operators consolidate and more drivers buy so-called flex-fuel cars. Rising demand for the cars, which run on any mixture of gasoline or ethanol, helped propel ethanol sales volumes in Brazil past gasoline in February, Cosan said, citing the National Petroleum Agency.