Raízen Dismisses Speculation On Argentine Operations Sale
Date
9/28/2024 5:00:06 AM
(MENAFN- The Rio Times) Raízen, a joint venture between Shell and Cosan, has addressed rumors about selling its Argentine operations.
The company firmly denied ongoing negotiations for divestment in response to a Brazilian Securities Commission inquiry.
Raízen emphasized its continuous evaluatio of business portfolios and asset recycling as part of its strategy.
The company's presence in Argentina dates back to 2018 when it acquired Shell's downstream business for $916 million.
This Acquisition included the Buenos Aires Refinery, 665 retail stations, and various fuel-related businesses.
The Shell brand remains prominent in Argentina through a licensing agreement with Raízen. Raízen's global operations extend beyond Argentina, with a significant presence in Brazil.
The company manages around 6,400 Shell service stations in Brazil and boasts an annual turnover of approximately $24 billion.
As a leading biofuels producer and fuels distributor, Raízen plays a crucial role in the region's energy sector. Recent developments highlight Raízen's commitment to growth and innovation.
The company signed a substantial cellulosic ethanol deal with Shell and plans to build five new plants in Brazil.
In Argentina, Raízen announced a $600 million investment over four years to modernize its refinery.
The strategic importance of Raízen's Argentine operations cannot be overstated. The acquisition of Shell's assets strengthened the regional partnership between Shell and Cosan.
It allows Shell to benefit from Argentina's growing downstream market while expanding Raízen's influence in the global biofuel market.
Raízen Dismisses Speculation on Argentine Operations Sale
Despite denying current sale negotiations, Raízen's statement about continuous portfolio evaluation suggests potential future changes.
The company's significant investments and strategic positioning in South America underscore its importance in the region's energy sector.
Raízen's focus on biofuels and its relationship with Shell position it as a key player in sustainable energy transition.
Raízen Dismisses Speculation on Argentine Operations Sale
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