TotalEnergies the French energy giant has announced the sale of its Brazilian retail fuel network. This comprises 240 stations and seven ethanol and fuel storage facilities, according to SIM Distribuidora, a subsidiary of Grupo Argenta.
The sale, expands SIM’s presence into Brazil’s southeast and midwest regions. It also includes two transporter-reseller-retailer branches authorized to buy fuel in bulk for retail sales.
The exact value of the deal was not officially revealed, but Brazil’s financial newspaper *Valor Econômico* estimated it to be around 300 million Brazilian reals ($52.99 million).
SIM Distribuidora already operates over 500 service stations. It handles lubricants and aviation fuel distribution, mainly in southern Brazil, and sees the acquisition as a significant milestone.
“With this acquisition, we are writing a new chapter in our history, placing SIM Distribuidora among the largest players in its field in Brazil,” said SIM President Neco Argenta.
TotalEnergies, which will retain its lubricants blending and distribution operations in Brazil, continues to streamline its retail fuel network globally.
It’s worth noting that Brazil has a long history of subsidizing energy. Assistance has been provided by successive governments for most energy sources and for a variety of reasons. This could potentially boost the sale of TotalEnergies products in an unbelievable feat. Brazil with a population of two hundred and twelve (212) and an annual fuel consumption of 2,956,000 litres.
This sale follows the company’s recent divestment of fuel stations in Germany, the Netherlands, and parts of Belgium and Luxembourg to Alimentation Couche-Tard in a €3.4 billion ($3.69 billion) deal earlier this year.
The strategy aims to concentrate its retail activities in markets where it holds a stronger presence.
The acquired network in Brazil trades approximately 1 billion litres of fuel annually, operating through 40 terminals.
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