Bloomberg News

Shell’s Brazil Venture Reaches Accord With BP on Jet-Fuel Assets

December 16, 2011

(Updates with comments from the commissioner on third paragraph.)

Dec. 15 (Bloomberg) -- Royal Dutch Shell Plc and Cosan Industria & Comercio SA’s joint venture in Brazil has reached a preliminary accord to sell its jet-fuel unit to BP Plc, the nation’s antitrust regulator said today.

The venture, called Raizen, was granted an additional five days to present the agreement to the regulator before being fined, Olavo Chinaglia, interim president of the agency, said at a meeting in Brasilia today. Cade, as the regulator is known, ordered the sale after Shell and Cosan combined some assets in Brazil, including service stations and the jet-fuel unit that Cosan had bought from Exxon Mobil Corp.

“Failure to carry out Cade’s decision means the operation will have to be reverted with a return of assets to Cosan,” said Chinaglia. “This would affects the assessment of the joint venture formed between Shell and Cosan.”

A final ruling on the entire joint venture hasn’t been scheduled yet, Cade’s attorney Gilvandro Araujo said. Raizen is the world’s biggest processor of sugar-cane into sweetener and ethanol.

--Editors: Carlos Caminada, Jessica Resnick-Ault

To contact the reporters on this story: Arnaldo Galvao in Brasilia Newsroom at agalvao1@bloomberg.net; Lucia Kassai in Sao Paulo at lkassai@bloomberg.net

To contact the editor responsible for this story: Carlos Caminada at ccaminada1@bloomberg.net


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