Shell to sell downstream Argentina business to Raízen for $950M

|By:, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) agrees to sell its downstream business in Argentina to Raízen, the 50/50 joint venture set up in 2011 between Shell and Cosan, for $950M.

Shell says the sale includes the Buenos Aires refinery, ~645 retail stations, liquefied petroleum gas, marine fuels, aviation fuels, bitumen, chemicals and lubricants businesses, as well as supply and distribution activities in Argentina; after the transaction closes, the businesses acquired by Raízen will continue their relationships with Shell through various commercial agreements.

Raízen also is a leading biofuels producer and fuels distributor in Brazil, where it manages more than 6K Shell service stations.

The sale does not include Shell’s Upstream interests in the Vaca Muerta shale formation, where the company says it sees substantial long-term growth potential.

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