Raizen SA Considers Sale of Argentine Energy Assets with JPMorgan’s Help

Raizen SA is exploring the sale of its Argentine oil refinery and gas stations, hiring JPMorgan to manage the process. This move follows a trend of multinationals selling operations in Argentina, driven by economic shifts under President Milei and increasing financial pressures. Raizen’s assets are significant, comprising a notable share of the market.

Raizen SA, a Brazilian energy firm, is reportedly considering the sale of its oil refinery and gas station network in Argentina. This decision is influenced by rising borrowing costs in Brazil, as well as shifting investment dynamics in the region. To facilitate the potential transaction, Raizen has enlisted the services of JPMorgan Chase & Co. as the managing entity, according to sources familiar with the discussions.

In summary, Raizen’s potential divestment from Argentina reflects broader trends among multinational corporations amid economic shifts under President Javier Milei. With rising costs and evolving market conditions, Raizen’s actions underscore the challenges facing foreign entities in the Argentine energy sector. The company’s assets, including the historic Dock Sud refinery, represent a significant portion of the local market.

Original Source: www.livemint.com