Reuters: Brazilian sugar and biofuel giant Cosan plans to merge its ethanol and fuel distribution units with Royal Dutch Shell in a deal worth up to $12 billion, extending a trend of growing foreign investment in the fast-growing industry. The deal, announced on Monday, significantly expands Shell’s ethanol operations in Brazil and follows moves by British oil major BP, which in 2008 took a stake in a Brazilian biofuel project and unveiled $1 billion in investments. Shares of Cosan …