What companies are vying to acquire Shell in Argentina?

Two companies have qualified for the final stage to acquire a Shell refinery and terminals in Argentina, in a $1 million deal for Raizen.

03/12/2025 – 09:43 AM

Companies Mercury energy and Vitol They seek to keep refineries and service stations operating under the brand coincidence In Argentina, a monarchy root. According to the sources I quoted Bloomberg,community mercury It will include national businessmen such as Jose Luis Manzano.

The process is expected above 1000 million US dollarsalthough some sources count up to 1.6 billion US dollars. It turns out that Mercuria made an initial offer close to 1.4 billion US dollars. CGC, Eduardo Ornikian’s oil company, and Trafigura, which owns the Puma brand, have already been excluded from the bidding.

Mercuria and Vitol aim to expand their presence in the field of fuel refining, just as the country’s government did Javier Mileybuoyed by its electoral victory, is advancing deregulation policies. In the first months of his term, the president lifted restrictions on crude oil and fuel prices, creating a more attractive climate for international capital.

Reasons to sell Ryzen

The Brazilian company, the largest producer of ethanol from sugar, is facing financial difficulties under new management. Its strainer is in Doc SudBuenos Aires, operations 101,000 barrels per daybeing the third largest in the country. Network approx 700 service stations It represents approximately 19% of the Argentine gasoline and diesel market, according to YPF.

Risen faces high levels of debt after investing in biofuel plants that did not meet expected demand. Low sugar prices and poor harvests also affected their finances. The company saw its net debt rise by 49% in the third quarter compared to the same period of the previous year, reaching approximately 10,000 million US dollarss, Moody’s responded by lowering its credit rating.

Profile of finalists

mercuryHeadquartered in Geneva, it is already involved in Argentina through… Phoenix Global Resourcesthe main producer of crude oil in Rio Negro, where José Luis Manzano is also involved. Currently, the company has no refining operations.

For her part, Vitoloriginally from the Netherlands, operates a port near Buenos Aires for fuel trade. The company expanded its presence in fuel distribution in South Africa and Turkey, in addition to acquiring an export refinery in Italy, and participating in the tender to purchase the parent company of… Citgo Petroleum.

International brokers seek ultimate assets

The dispute over Raizen’s Argentine origins reflects a global phenomenon: Raw material brokers are seeking to integrate refining and marketing facilities, ensuring profits derived from the energy crisis that arose after the Russian invasion of Ukraine.

The joint venture between Shell and Cosan, Raizen, bought Shell’s Argentine assets in 2018. The divestment of these businesses is currently considered critical to reduce liabilities and prioritize more sustainable activities.