Swiss energy trader Mercuria Energy Group and Swiss-Dutch oil trader Vitol Group are among the contenders to acquire part of the assets of Brazilian Raizen SA in Argentina. This is reported in a press release from Raizen.
The deal, which could be worth more than $1 billion, includes the Dock Sud refinery in Buenos Aires with a capacity of 101,000 barrels per day and a network of 700 filling stations that provide 19% of gasoline and diesel fuel sales in Argentina.
As part of the deal, Raizen, a joint venture between Brazilian holding company Cosan SA and British oil producer Shell PLC, is selling assets due to mounting debts after major investments in biofuel plants failed to pay off due to low demand. Raizen acquired assets from Shell in 2018. Lower sugar prices and low yields also hurt the company, increasing Raizen's debt by 49% to $10 billion in the third quarter.
Mercuria Energy and Vitol expect to expand their presence in the Argentine refining sector, taking into account the government's desire to simplify the regulation of the refining market. In particular, earlier the Argentine government lifted controls on the prices of crude oil and fuel.
Mercuria owns oil assets in Argentina as part of a controlling stake in Phoenix Global Resources, which is drilling in a shale field in Patagonia, while Vitol owns a fuel trading port near Buenos Aires, as well as fuel sales assets in South Africa and Turkey, and an export refinery in Italy.
Raizen is a Brazilian producer of bioenergy resources from sugar cane. The company also sells fuel at gas stations under the Shell brand and provides services in the pharmaceutical and food industries. The headquarters is located in Rio de Janeiro (Brazil).
Cosan is a Brazilian producer of bioethanol, sugar and energy resources. The headquarters is located in Sao Paulo (Brazil).
Vitol Group is a Swiss—Dutch oil and petroleum products trading company. The company is the largest oil trader in the world and operates refineries, terminals, warehouses, power plants and gas stations. The headquarters is located in Rotterdam (the Netherlands).
Mercuria Energy Group is a Swiss multinational commodity trading company. Mercuria includes subsidiaries Navitas Energy in Canada and Vesta Terminal Services in Europe, which manages port logistics, warehousing and processing facilities in the Netherlands, Estonia, Belgium and Germany. The headquarters is located in Geneva (Switzerland).
Read also in our Telegram channel "Mergers and acquisitions. AK&M».
