Shell has signed an agreement to sell its downstream business in Argentina to Raízen (a joint venture between Shell and Cosan) for US$0.95 billion in cash proceeds at completion, subject to customary closing conditions.
The sale includes the Buenos Aires Refinery, around 645 retail stations, LPG, marine fuels, aviation fuels, bitumen, chemicals and lubricants businesses, as well as supply and distribution activities in the country.
After the transaction closes, the businesses acquired by Raízen will continue its relationships with Shell through various commercial agreements, which represent an estimated value of US$0.3 billion.
The agreement with Raízen is the result of a competitive bidding process and the sale is expected to be completed later this year.
The deal offers the opportunity to consolidate a regional partnership between Shell and Cosan.