Raizen acquires Shell’s lubricant business in Brazil

The Brazilian energy company has been operating as Shell's exclusive lubricants sales agent in the country since 2011. The 10-year contract’s expiration resulted in the new deal.

Brazilian energy company Raizen, a joint venture between Royal Dutch Shell Plc and local group Cosan SA, agreed to acquire Shell's entire lubricant businesses in Brazil, report several media. The deal includes a blending plant and a terminal in the state of Rio de Janeiro.

The agreement signifies "the acquisition of the entirety of Shell's lubricants business in Brazil by Raizen," said Cosan on Monday. No figures were given on the transaction.

Raizen has been operating as Shell's exclusive lubricants sales agent in Brazil since 2011 through a 10-year contract. Following the contract's expiration, the two companies expanded the scope of their relationship, resulting in the purchase of Shell’s entire lubricants business by Raízen.

The transaction is subject to the approval of the Administrative Council for Economic Defence (Consejo Administrativo de Defensa Económica, Cade) and the fulfilment of other conditions.

Currently, Raízen has a network of over 7,000 fuel stations through the license of the Shell brand spread throughout Brazil and Argentina, as well as more than 1,000 Shell Select Convenience Stores.