Royal Dutch Shell on Monday agreed to sell its lubricant business in Brazil to Raizen, the energy company joint venture that has served as its lubes distributor in the country for the past decade.
The companies did not disclose terms of the transaction, which requires approval by Brazil’s Administrative Council for Economic Defense.
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Under terms of the deal, Raizen would receive a finished lubricant blending plant and storage terminal in Rio de Janeiro.
Raizen also acquired Shell’s lubricant operations in Argentina in 2018 as part of a deal encompassing all of Shell’s downstream activities in that country.
Raizen, which claims to be Brazil’s third-largest energy company, operates a network of more than 7,000 Shell-branded fuel stations in Brazil and Argentina plus more than 1,000 Shell-branded convenience stores.
Cosan, which is based in Sao Paulo, Brazil, is a publicly held conglomerate with activities in sugar, bioethanol and energy. It has its own lubricant arm, Moove.
The sale by Shell is part of a multi-year effort to streamline its portfolio and to raise cash.