Raízen Argentina currently ranks as the country’s second largest fuel distributor, with an estimated 17-19% market share, trailing only YPF. The company operates the Dock Sud refinery in Buenos Aires province, a facility that has undergone substantial investments totaling approximately $715 million between 2020 and 2023 to upgrade its processing capabilities and align with international standards. The refinery has adapted to process crude from Vaca Muerta—the prolific shale formation that has become Argentina’s energy cornerstone.
The origins of Raízen date back to 2018, when the joint venture between Brazilian conglomerate Cosan and Shell acquired Shell’s refining and marketing operations in Argentina for $950 million. At that time, the acquisition included around 645 service stations and extended brand operations across multiple sectors, including fuels for aviation, marine, lubricants, and agricultural markets. Since then, Raízen has expanded its network to roughly 700 service stations across the country.
Mercuria, which was founded in 2004 in Geneva and today operates in over 50 countries with annual revenues exceeding $170 billion, has been steadily growing its footprint in energy markets globally. Known for emphasizing efficiency, technology, and low-carbon solutions, Mercuria has committed more than half of its new investments toward renewable energy and energy transition initiatives. The group is already active in Argentina through its stake in Phoenix Global Resources, a company focused on unconventional oil production in Vaca Muerta with an investment plan exceeding $2 billion.
The offer for Raízen’s Argentine operations, reportedly made independently by Mercuria without direct participation from its local partners such as José Luis Manzano and Daniel Vila—who are involved in Phoenix Global Resources—could significantly boost the Swiss firm’s refining and fuel distribution capacity in the region. Additionally, it would enhance Mercuria’s share in natural gas markets, given their stake in Metrogas, Argentina’s largest gas distributor.
The sale process, managed by Brazilian investment bank BTG Pactual, is in the final stages, including a rigorous due diligence phase. This examination focuses on verifying asset quality and uncovering potential risks such as contingent liabilities or legal disputes. Offers from several major global trading houses—including Vitol, Trafigura, and Compañía General de Combustibles—have either been excluded or remain less competitive, leaving Mercuria’s bid and one from CGC as the primary contenders.
However, recent internal dynamics within Cosan, shaped by a capital raise involving BTG Pactual as a major investor, have introduced some uncertainty. BTG’s influence has reportedly led to a reassessment of the asset’s valuation, with calls from key figures to potentially hold out for a higher sale price—estimated at around $1.5 billion following shifts in Argentina’s political landscape. Such developments could delay the closing of the transaction or alter its terms.
Should the acquisition proceed as proposed, Mercuria would establish itself as a dominant player in Argentina’s downstream energy value chain, joining YPF at the forefront of fuel refining and retail. The deal underscores the ongoing globalization and concentration within South America’s energy markets, where access to infrastructure assets like the Dock Sud refinery and service station networks is vital to capturing growth in fuel demand and navigating an evolving energy transition.
As of late November 2025, all parties remain engaged in negotiations with market watchers anticipating a resolution in the coming months amid evolving political and economic conditions in Argentina’s energy sphere.
—
(Word count: approx. 560)
This article was curated and published as part of our South American energy market coverage.
