Company News

Brazil's Raizen Buys Shell Downstream Assets in Argentina for $950 mln

Reuters
25/04/2018 15:29
Visualizações: 3820 (0) (0) (0) (0)

Brazil's Raizen Combustiveis SA agreed to buy downstream assets in Argentina from Royal Dutch Shell PLC for $950 million, according to a securities filing on Tuesday.

 

Raízen Combustiveis, a joint venture between Brazil´s Cosan SA Indústria e Comércio and Shell, will have a 20 percent market share in fuel distribution in Argentina after acquiring a network of 645 gas stations in the country.

 

Raízen also is acquiring a refinery in Buenos Aires, LPG and aviation fuel terminals and a lubricant plant, among others, which have an annual net revenue of $3.3 billion.

 

Reuters first reported that Raízen would buy the business last August.

 

The deal in Argentina is similar to the model Shell operates in downstream assets in Brazil. The network of 6,200 gas stations that uses the Shell brand is owned by its joint venture with Cosan.

 

During the sale process, Raízen´s bid topped rival offers by Argentine oil company YPF SA, Chile's Quinenco SA and China National Petroleum Corp's Petrochina Co.

 

The businesses acquired by Raízen will continue their relationships with Shell through various commercial agreements, representing an estimated value of $300 million, Shell said https://go.shell.com/2HntfeH.

 

The Anglo-Dutch company said it will keep its upstream interests in the Vaca Muerta shale formation, which was not included in the Raízen deal, as it "sees substantial long-term growth potential in Argentina's shale resources."

 

The sale is part of Shell's strategy to simplify its portfolio through a $30 billion divestment program by 2018, and follows a strategic review of the downstream business in Argentina that began in August 2016.

Most Read Today
see see
Energy Summit
Energy Summit 2026: Embrapii technologies strengthen Bra...
22/06/26
Energy Summit
Biodiesel and renewable fuels move to the center of the ...
22/06/26
Natural Gas
ANP extends public consultation on the calculation of th...
22/06/26
Rio de Janeiro
Firjan’s Oil Yearbook in Rio highlights that positive pr...
22/06/26
Biomethane
With a market five times larger since 2020, the biometha...
22/06/26
Petrobras
Petrobras approves investment in bio-jet fuel and renewa...
22/06/26
BOGE2026
Smart Control Gains Prominence at Bahia Oil & Gas Energy...
09/06/26
BOGE2026
Bahia Oil & Gas Energy Concludes Historic Edition and Se...
06/06/26
Branded Content
Boaventura Energy Complex drives Brazil’s energy future ...
06/06/26
BOGE2026
Mayekawa do Brasil present at Bahia Oil & Gas Energy
06/06/26
BOGE2026
Benel Marks Presence at Bahia Oil & Gas Energy and Annou...
02/06/26
BOGE2026
Bahiagás Highlights Bahia’s Leading Role in the Energy T...
30/05/26
Investments
Petrobras Announces Investments of More Than R$ 70 Billi...
30/05/26
BOGE2026
Oil States Reinforces Commitment to Innovation and Opera...
29/05/26
BOGE2026
PetroReconcavo Discusses the Future of Oil and Gas at Ba...
29/05/26
BOGE2026
Lumina Group Makes Its Presence Felt at Bahia Oil & Gas ...
29/05/26
BOGE2026
Bahia Brings Together Industry, Innovation, and Business...
28/05/26
Royalties
Amounts related to March production for concession and t...
28/05/26
BOGE2026
Oil & Gas Expansion Boosts Demand for Industrial Waste T...
28/05/26
BOGE2026
BRAVA Energia Marks Presence at Bahia Oil & Gas Energy 2...
27/05/26
IBP
Brazil Can Expand Its Prominence as a Global Energy Supp...
27/05/26
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.