Wedoany.com Report on Feb 12th, Switzerland-based energy trader Mercuria Energy Group is close to finalizing a deal to acquire an Argentine refinery and fuel retail network from Brazilian biofuels producer Raízen. The transaction, expected to be valued at over $1 billion, will include a refinery and hundreds of retail sites.

The sources indicated that negotiations have made significant progress and a deal could be reached soon, but there remains a risk of the talks falling apart. Another source stated that signing a final agreement could take several weeks. No binding agreement has been signed by the parties yet.

Raízen's Argentine assets had attracted interest from several global trading firms, including Vitol, which had also expressed acquisition interest. However, informed sources said talks with Mercuria have progressed further. Mercuria, Vitol, and Raízen have all declined to comment on the matter. Bloomberg had previously reported that Mercuria was close to a deal.

Raízen, a joint venture between Brazilian conglomerate Cosan and Shell, has been under financial pressure recently due to consecutive quarterly losses and high debt. The deterioration of its balance sheet has led to bond sell-offs, with its credit rating being downgraded multiple times this week. Fitch Ratings downgraded Raízen to "CCC," while S&P Global Ratings lowered it to "CCC+," reflecting market concerns over its liquidity and refinancing risks.

Late Monday, Raízen confirmed it had appointed law firms Pinheiro Neto and Cleary Gottlieb as legal advisors and Rothschild as financial advisor, a move seen as preparation for a potential asset sale or restructuring. For Mercuria, this acquisition would deepen its downstream business footprint in South America, helping it secure margins and market access amid global energy market volatility.