BP - BP Doubles Down On Biofuels: Buys Out Bunge Bioenergia for $1.4B | Benzinga
BP p.l.c. (NYSE:BP) shares are trading higher after the company agreed to purchase Bunge Global SA‘s (NYSE:BG) 50% stake in their joint venture, BP Bunge Bioenergia S.A., for an enterprise value of about $1.4 billion.
The acquisition will consolidate 100% of the venture’s financial results, including net debt of about $0.5 billion and lease obligations of around $0.7 billion.
The buyout meets BP’s expected bioenergy returns threshold of over 15% and fits within its disciplined financial framework, which includes capital expenditure targets of around $16 billion for 2024 and 2025.
Upon completion, BP can produce about 50,000 barrels per day of ethanol equivalent from sugarcane through Bunge Bioenergia’s 11 agro-industrial units in five Brazilian states.
After the deal closes, ...