Energy trading giants Mercuria Energy Group and Vitol Group are reportedly among the finalists to acquire a refinery and a network of petrol stations in Argentina currently owned by Raizen. Sources familiar with the matter, who preferred to remain anonymous due to the sensitivity of ongoing negotiations, indicated that the deal could exceed US$1 billion (A$1.5 billion). One source suggested the value of the assets may reach as high as US$1.6 billion.
Both Mercuria and Vitol are seeking to expand their involvement in the refining sector. This move comes as Argentine President Javier Milei is expected to expedite deregulation efforts following his recent victory. During the initial phase of his administration, Milei eliminated controls on both crude oil and fuel prices, signalling a shift towards a more liberalised market.
Raizen, Brazil’s largest producer of ethanol fuel from sugar, is divesting these assets amid increasing debt and a change in management. The company’s Dock Sud oil refinery, located in Buenos Aires, possesses a daily processing capacity of 101,000 barrels, positioning it as Argentina’s third-largest facility, according to the EIA. Raizen’s network includes approximately 700 service stations, representing around 19 per cent of Argentina’s total petrol and diesel sales, as reported by market leader YPF SA.
Neither Vitol nor Raizen immediately responded to requests for comment. A spokesperson for Mercuria declined to comment on the potential transaction.
