Raízen negotiates consortium with GIP fund for Petrobras refineries, sources say

Jan 16, 2020

Global Infrastructure Partners (GIP) fund manager plans to submit a joint offer with Raízen for refineries for sale by Petrobras, two people with knowledge of the matter said.

Raízen, a joint venture between Royal Dutch Shell PLC and ethanol producer Cosan SA, made non-binding offers for the largest refineries for sale by Petrobras, as reported by Reuters in late November.

New York-based GIP manages $ 50 billion in assets in its infrastructure funds and invests in sectors such as energy, transportation, water and waste management.

Raízen and GIP did not immediately respond to requests for comment.

If the offer is successful, it will mark GIP’s first investment in Brazil. Last year, the manager began raising a new fund to invest in emerging markets in Latin America and Asia.

Raízen controls 7,000 gas stations in Brazil and Argentina, and has about 3,000 customers. Although it controls a refinery in Argentina, it still has no refining presence in Brazil, where Petrobras has a monopoly in the sector.

Binding offers from the four largest refineries are expected in early March and must be delivered with the final composition of the groups, according to sources, who requested anonymity because the discussions are not public.

Since November, when Petrobras selected four groups that have entered the binding offer phase for its four refineries, companies are negotiating the formation of consortia.

The groups selected for the second phase are Ultrapar Participações SA, Raízen, the United Arab Emirates state fund Mubadala Investment Company and Chinese oil company Sinopec, sources told Reuters late last year.

Ultrapar and Mubadala are in talks with potential partners, but have not reached agreements, according to people with knowledge of the matter. Sinopec intends to present an offer individually, the sources added.

Source: Reuters

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