MOSCOW (MRC) -- Brazil's Raizen Combustiveis SA agreed to buy downstream assets in Argentina from Royal Dutch Shell PLC for USD950 million, according to a securities filing, reported Reuters.
Raizen Combustiveis, a joint venture between Brazil?s Cosan SA Industria e Comercio 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.
Raizen 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 USD3.3 billion.
Reuters first reported that Raizen 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, Raizen?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 Raizen will continue their relationships with Shell through various commercial agreements, representing an estimated value of $300 million, Shell said.
The Anglo-Dutch company said it will keep its upstream interests in the Vaca Muerta shale formation, which was not included in the Raizen 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 USD30 billion divestment program by 2018, and follows a strategic review of the downstream business in Argentina that began in August 2016.
As MRC informed before, Royal Dutch Shell Plc is selling its upstream assets in New Zealand to Austria’s OMV AG (OMVV.VI) for USD578 million. The March agreement includes the sale of Maui, Pohokura and Tank Farms. After deal closure, Shell Taranaki and Shell New Zealand employees will become a part of OMV New Zealand, Shell said.
Royal Dutch Shell, commonly known as Shell, is an Anglo–Dutch multinational oil and gas company headquartered in the Netherlands and incorporated in the United Kingdom.Created by the merger of Royal Dutch Petroleum and UK-based Shell Transport & Trading, it is the fourth largest company in the world as of 2014, in terms of revenue, and one of the six oil and gas "supermajors".