Raízen closes in on acquisition of Shell Argentina

Brazil's Raízen Combustíveis SA could be about to pay parent Royal Dutch Shell Plc’s Argentina gas station network for more than $1 billion, according to Reuters.

Raizen Energia SA, an independently operated six-year old joint venture between Shell and Cosan SA, has placed a higher bid for the Shell business than competing companies such as YPF Sociedad Anonima, Quinenco SA and PetroChina Company.

Raizen was formed in 2011 and controls over 6,000 Shell-branded gas stations in Brazil. The JV is also in charge of distribution of approximately 25 billion liters of fuel in this Latin American country.

Since Shell announced the sale of its retailing unit in Argentina, which includes 630 gas stations, many players have shown interest in the acquisition. The sale is part of a $30 billion divestiture program to cut debt following last year’s acquisition of BG Group Plc.