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Raizen, a Brazilian energy company, has enlisted JP Morgan to oversee the potential sale of its infrastructure in Argentina, including its refinery and gas stations, as per sources.
The company’s exit from Argentina would join other companies like HSBC, Exxon Mobil, and Mercedes Benz that have decided to sell their operations in the country despite President Javier Milei’s economic measures. The Dock Sud refinery, the country’s oldest with a daily capacity of 100,000 barrels, is also affected.
Raizen, a collaboration between Shell and the Brazilian company Cosan, operates 700 fuel stations throughout Brazil and represents 18% of the country’s gasoline and diesel sales, all under the Shell brand.
Sale reasons
The Brazilian energy company acquired Shell’s assets for $1 billion amidst the recent market-oriented reform in Argentina.
Raízen is choosing to sell off assets and slow down its growth, following a rise in loan costs in Brazil that has impacted the company’s financial situation, as reported by Bloomberg Línea.
Raizen and JPMorgan’s press offices declined to provide a statement. This sale coincides with Milei lifting the regulations on oil prices that were previously used to manage inflation. As a result, domestic fuel prices now align with global market rates.
Raízen (RAIZ4) and Itaú secure nearly $3 billion internationally.
Raízen (RAIZ4) and Itaú Unibanco raised $2.75 billion through bonds (foreign fixed-income securities), indicating the appeal of Brazilian debt securities to international investors. Both banks experienced strong demand for their securities.
Brazilian companies acquired abroad totaled R$9.39 billion. In 2024, the figure reached R$21 billion, with major national banks anticipating a range between $20 billion and $25 billion for the current year.
Itaú did not access the dollar debt market for some time, but recently issued $1 billion in bonds with a five-year maturity. Investor demand was $2.9 billion, enabling the bank to lower the bond interest rate to 6%.
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