By Brazil Stock Guide – Brazilian energy company Raízen has completed the $1.42 billion sale of its operations in Argentina to commodities trader Mercuria Energy Group, the company said on Tuesday, as it moves ahead with efforts to simplify its portfolio and strengthen its balance sheet.
The transaction value includes both a cash payment and the assumption by the buyer of debt held by Raízen Argentina, meaning the full $1.42 billion will not flow into Raízen’s cash position.
Raízen did not disclose how much cash it received at closing.
The company said the final net proceeds will only be determined after customary post-closing adjustments based on the unit’s closing financial statements.
The distinction is important for investors assessing the impact of the disposal on Raízen’s leverage, as cash proceeds could be used directly to strengthen the company’s capital structure.
Raízen said the net proceeds from the transaction would be allocated to managing its capital structure.
The sale was completed through Raízen Energia and transfers the Argentine operations, including related assets and equity interests, to Latam Downstream Holdings Ltd. and Silver Projects I S.A.U., both owned by Mercuria.
The deal closed after all conditions precedent had been fulfilled, including regulatory approvals, Raízen said.
The transaction had originally been announced on June 4.
Raízen described the disposal as part of a broader strategy to optimize its asset portfolio, simplify its operating structure and concentrate capital on priority markets and geographies.
For investors, the next key figure will be the amount of net cash Raízen ultimately receives from the transaction.
Because the announced $1.42 billion value includes debt assumed by Mercuria, it cannot be directly translated into an equivalent reduction in Raízen’s net debt.
The company did not provide a timetable for disclosing the final net proceeds.
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