Swiss-based commodities and energy trading house Mercuria Energy Group is moving closer to acquiring a refinery and hundreds of fuel retail stations in Argentina from struggling Brazilian biofuels producer Raízen, according to sources familiar with the talks.
Two people with knowledge of the matter said negotiations have advanced significantly, with one noting the transaction could be finalized soon, although risks remain that the deal could still fall through. Another source said a signing may still be weeks away, adding that the deal value is expected to exceed $1 billion. No binding agreement has yet been signed.
Raízen’s Argentine assets have attracted interest from several global trading houses, with Vitol Group also previously pursuing the portfolio. However, discussions with Mercuria have progressed further, the sources said. Mercuria, Vitol, and Raízen declined to comment. Bloomberg first reported that Mercuria was nearing a deal.
Raízen, a joint venture between Brazilian conglomerate Cosan and oil major Shell, has come under mounting financial pressure after posting a series of heavy quarterly losses and building up high debt levels. The deterioration in its balance sheet has triggered a selloff in its bonds and prompted multiple credit downgrades this week.
Fitch Ratings cut Raízen’s rating first to “B” and then to “CCC,” while S&P Global Ratings downgraded the company to “CCC+,” reflecting heightened concerns over liquidity and refinancing risks.
Late Monday, Raízen confirmed it had appointed law firms Pinheiro Neto and Cleary Gottlieb as legal advisers, alongside Rothschild as its financial adviser, signaling preparations for potential asset sales or restructuring.
For Mercuria, the acquisition would deepen its downstream footprint in South America at a time when trading houses are increasingly seeking control over physical refining and retail assets to secure margins and market access amid volatile global energy markets.
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