Shell CAPSA, a unit of the Hague-based LNG giant Shell, has completed the sale of its downstream business in Argentina to Raízen for $916 million in cash.
The sale includes the Buenos Aires Refinery, around 665 retail stations, liquefied petroleum gas (LPG), marine fuels, aviation fuels, bitumen, chemicals and lubricants businesses, as well as supply and distribution activities in the country.
In addition, the companies acquired by Raízen will continue the relationships with Shell through various commercial agreements, Shell said in a statement on Monday.
Completion of the sale follows an agreement announced in April 2018.
Raízen, a joint venture set up in 2011 between Shell and Cosan, is a leading biofuels producer and fuels distributor in Brazil, where it already manages around 6,400 Shell service stations.
This sale offers the opportunity to consolidate a regional partnership between Shell and Cosan, and allows Shell to continue to benefit from Argentina’s growing downstream market, the company said.
Shell added that the sale is consistent with the company’s strategy to simplify its portfolio through a $30 billion divestment programme.
It does not include Shell’s upstream interests in the Vaca Muerta shale formation.