SUN - BP to Acquire Full Control of Biofuels Joint Venture for $1.4B | Benzinga
BP plc (NYSE: BP) has announced its agreement to acquire Bunge's 50% stake in their joint venture, BP Bunge Bioenergia S.A., solidifying BP's control over one of Brazil's top biofuel-producing companies. This strategic acquisition, valued at approximately $1.4 billion, marks a pivotal step in BP's efforts to expand and optimize its bioenergy portfolio.
Strengthening Biofuels Operations
The acquisition will allow BP to fully integrate BP Bunge Bioenergia into its operations, leveraging its trading and technology capabilities to maximize value. The deal is expected to lead to the consolidation of 100% of the JV's financial results, including debt of around $0.5 billion and lease obligations of approximately $0.7 billion.
Once the transaction is completed, BP will have the capacity to produce around 50,000 barrels of ethanol equivalent per day from sugarcane, utilizing BP Bunge Bioenergia's 11 agro-industrial units spread across five Brazilian states. This integrated business model spans the entire production chain, from cultivation to selling ethanol and sugar.
Emma Delaney, BP's executive vice president for customers and products, conveyed her excitement about BP Bunge Bioenergia's industry leadership and opportunity to enhance value through its trading and technology capabilities.
Refocusing Biofuels Development
Alongside this acquisition, BP is reassessing its approach to new biofuel projects. The company is pausing two potential developments in sustainable aviation fuel (SAF) and renewable ...