Shell Buys Aviation Fuel Unit From Brazil's Cosan
May 20 2009 - 8:11AM
Dow Jones News
The Brazilian unit of Royal Dutch Shell (RDSA.LN) purchased
aviation fuel distribution assets from Brazilian sugar and ethanol
group Cosan Industria e Comercio SA (CSAN3.BR), Shell Brasil said
Wednesday.
Shell Brasil Ltda. said that it paid 150 million reals ($73.8
million) for the assets, which Cosan acquired in April 2008. The
aviation fuel distribution unit was part of Cosan's purchase of
Exxon Mobil's (XOM) local distribution unit, Esso Brasileira de
Petroleo Ltda., for $1 billion.
"We want to continue growing in" Brazil, said Vasco Dias,
president of Shell Brasil, in the statement.
In 2008, Shell Brasil sold 1.6 billion liters of aviation fuel
at more than 50 airports across Brazil.
Last year, Cosan reportedly wanted to sell off non-core
distribution assets to focus on the south and southeast regions of
Brazil to have more synergy with the company's ethanol
production.
Cosan is one of the world's largest producers of sugar and
ethanol. The company sold 560 million liters of aviation fuel at
seven Brazilian airports in 2008.
-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085;
jeff.fick@dowjones.com