Shell Brasil Petróleo Ltda, a subsidiary of Royal Dutch Shell plc, today signed an agreement to sell its lubricants division in Brazil to Raízen S.A. The transaction is still pending regulatory approvals and is expected to close in 2022.

"We are very excited to continue Shell's growth in the Brazilian lubricants market - one of the largest in the world - by integrating our lubricants division into our Raízen joint venture, a strategic partner of the Shell family," stated André Araujo ( photo), president of Shell Brasil. "In the true spirit of partnership that has marked Raízen's trajectory since its creation a decade ago, this transaction will bring more value to our customers, as they will have access to a complete offer of lubricants and fuels".

The proposed sale includes the lubricant plant on Ilha do Governador, in Rio de Janeiro, the oil base in Campos Elíseos, in Duque de Caxias (RJ), the Shell Marine ship lubricants division and the supply and distribution businesses of lubricants in the country.

The long-standing partnership between Shell and Raízen includes the retail, aviation and fuel distribution portfolios. The integration of the lubricants division into the joint venture will generate synergies between the two companies and will guarantee a supply of lubricants and fuels with more opportunities for decarbonization.

Grades 

• Raízen, a joint venture between Shell and Cosan, is an integrated energy company, leader in the production of sugarcane, ethanol and bioenergy in Brazil. Raízen has 26 production units, 860,000 hectares of cultivated agricultural land, a network of more than 6,000 Shell-branded service stations, 1,000 Select convenience stores and more than 3,300 commercial customers in Brazil and Argentina.

• Upon completion of the transaction, the Shell brand will continue to be highlighted, through the licensing agreement with Raízen. Customers will continue to have access to Shell branded products and services.