Brazil Orders Shell To Divest Fuel Biz In $12B Venture

Law360, New York (February 10, 2011, 5:16 PM EST) -- Brazil's antitrust authorities have ordered Royal Dutch Shell PLC to divest certain aviation fuel assets if it wants to move ahead with its $12 billion joint venture with sugar and biofuel giant Cosan SA Industria e Comercio.

Shell's Brazilian subsidiary acquired Cosan's aviation fuel business, Jacta Holdings, for $75 million in May 2009. But on Wednesday, the Conselho Administrativo de Defesa Economica, known as Cade, said Shell would have to sell Jacta.

If Shell kept this asset, it would cause an excess of market concentration in...
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