Mercuria Energy Group Ltd. announced it will acquire one of Argentina’s largest refineries and nearly 700 gas stations from Raizen SA. The Dock Sud refinery is Argentina’s third largest, and the gas stations represent about one fifth of the country’s fuel sales volume [1, 2].
The deal is valued at approximately $1.4 billion according to Bloomberg, while Yahoo Taiwan cites $1.42 billion [1, 2].
With the acquisition, Mercuria will become the third largest integrated oil producer in Argentina, behind YPF and Pan American Energy Group [2]. Mercuria plans to complete the purchase within the current fiscal year, subject to regulatory approval [2].
Raizen is divesting these assets as part of a debt restructuring plan. It carries about 65 billion Brazilian Reais in debt, roughly $12.9 billion US dollars, prompting the sale [2]. Raizen secured informal majority creditor support for its restructuring on June 3, soon before the acquisition announcement on June 4 [2, 1].
Mercuria intends to invest billions more through its Phoenix Global Resources subsidiary in Argentina’s Vaca Muerta shale region to boost oil production [2].
The next key development will be Mercuria's progress toward closing the acquisition and receiving the necessary regulatory approvals during this fiscal year [2].
