(Bloomberg) — Brazil’s Raizen SA has begun to explore the sale of its oil refinery and network of gas stations in Argentina, according to people familiar with the matter. Raizen, a joint venture between oil supermajor Shell Plc and Brazilian conglomerate Cosan SA, has hired JPMorgan Chase & Co. to manage the sale, said the people, who asked not to be named discussing private matters. Press offices for Raizen and JPMorgan declined to comment. The energy firm’s potential departure from Argentina would add to a growing list of multinational firms, including Exxon Mobil, HSBC Holdings Plc and Mercedes-Benz, that have chosen to sell operations in the country during the past year despite more investor optimism about President Javier Milei’s economic overhaul. Brazil’s largest producer of ethanol fuel, Raizen is mulling divestments and slowing down expansions as higher borrowing costs of late in Brazil rattle its finances. Its Dock Sud oil refinery in Buenos Aires is Argentina’s oldest with a capacity of 100,000 barrels a day that only trails two facilities run by state-run oil company YPF SA. Raizen’s network of around 700 gas stations account for 18% of Argentina’s gasoline and diesel sales, second to YPF, which has more than half of the market. The fuel is branded as Shell. Raizen bought the assets for almost $1 billion in 2018 from Shell, which owned them outright, during Argentina’s last experiment with market-oriented reforms. The country then witnessed a period of big government from 2019 to 2023 before voting in libertarian Milei more than a year ago. He is on a crusade to deregulate the economy, in particular the energy and oil sectors. The divestment comes as Milei rips away controls on crude and fuel prices that were used to stem inflation. That was sometimes bad for refiners or drillers, depending on the how the controls were engineered at different points in time. Domestic fuel prices now are aligned with the international market. More stories like this are available on bloomberg.com ©2025 Bloomberg L.P.
Raizen reportedly has engaged JPMorgan to assist with the sale of its energy assets in Argentina.
