Royal Dutch Shell plc has signed an agreement to sell its downstream business in Argentina to Raizen for $0.95 billion in cash proceeds at completion.
The sale includes the Buenos Aires Refinery, around 645 retail stations, liquefied petroleum gas, marine fuels, aviation fuels, bitumen, chemicals and lubricants businesses, as well as supply and distribution activities in the country. Additionally, after the transaction closes, the businesses acquired by Raizen will continue their relationships with Shell through various commercial agreements, which represent an estimated value of $0.3 billion.
Raizen is a joint venture set up in 2011 between Shell and Cosan. It is a leading biofuels producer and fuels distributor in Brazil, where it already manages more than 6,000 Shell service stations.
The agreement is consistent with Shell’s strategy to simplify its portfolio through a $30 billion divestment programme and follows a strategic review of Shell’s Downstream business in Argentina that began in August 2016. The agreement with Raizen is the result of a competitive bidding process and the sale is expected to complete later this year. It offers the opportunity to consolidate a regional partnership between Shell and Cosan.
Royal Dutch Shell plc has signed an agreement to sell its downstream business in Argentina to Raizen for $0.95 billion in cash proceeds at completion.
The sale includes the Buenos Aires Refinery, around 645 retail stations, liquefied petroleum gas, marine fuels, aviation fuels, bitumen, chemicals and lubricants businesses, as well as supply and distribution activities in the country. Additionally, after the transaction closes, the businesses acquired by Raizen will continue their relationships with Shell through various commercial agreements, which represent an estimated value of $0.3 billion.
Raizen is a joint venture set up in 2011 between Shell and Cosan. It is a leading biofuels producer and fuels distributor in Brazil, where it already manages more than 6,000 Shell service stations.
The agreement is consistent with Shell’s strategy to simplify its portfolio through a $30 billion divestment programme and follows a strategic review of Shell’s Downstream business in Argentina that began in August 2016. The agreement with Raizen is the result of a competitive bidding process and the sale is expected to complete later this year. It offers the opportunity to consolidate a regional partnership between Shell and Cosan.
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