Mercuria nears $1B deal for Raízen assets

Swiss energy and commodities trader Mercuria Energy Group is advancing an offer to buy Raízen's assets in Argentina. The deal covers an oil refinery and hundreds of gas stations.

According to two people familiar with the matter, the transaction is expected to exceed $1 billion. A binding agreement has not yet been signed. One source stated the transaction could close soon, while another noted the signing could take several weeks and risks falling apart. Vitol Group previously pursued the Argentine assets before talks progressed with Mercuria.

Raízen is a joint venture between Cosan and Shell. The company is facing heavy quarterly net losses and elevated debt levels, which recently triggered a sell-off in its bonds.

Earlier in the week, Fitch Ratings downgraded Raízen's credit rating first to B and then to CCC on the same day. S&P Global Ratings downgraded the company to CCC+. On Monday night, Raízen confirmed it hired law firms Pinheiro Neto and Cleary Gottlieb as legal advisors, alongside Rothschild as financial advisor.