Shell Argentina signed an agreement for the sale of its 645 service stations to Brazil-based Raízen for US$950mn in cash, subject to “normal conditions of closure,” the Anglo-Dutch firm said in a press release. The operation includes, in addition to the outlets, the company’s Buenos Aires refinery and its marine fuel, aviation fuel, asphalt, chemical and lubricant businesses, as well as its supply and distribution activities in the country.

Raízen is a joint venture established in 2011 between Shell (50%) and Cosan (50%), a sugar, ethanol and bioenergy producer from Brazil, with 860,000 cultivated hectares, a network of more than 6,000 Shell service stations and 950 Shell Select stores, according to bnamericas.com.

The firm has plans to develop logistical, marketing and financing synergies between Brazilian and Argentine operations. Shell’s 20% market share in Argentina was crucial for the buying decision, Raízen said in a press release.

Raízen will continue its relationship with Shell through several commercial agreements worth an estimated US$300mn. Through a brand license agreement, Raízen will continue to use the Shell brand, which will allow customers to “continue to enjoy access to high-quality, Shell-branded products and services,” the company said in the release.