bp completes Bunge Bioenergia acquisition
Bunge Global SA has completed the sale of its 50% stake in BP Bunge Bioenergia to bp, making bp the sole owner of the Brazilian biofuel company. The $1.4 billion acquisition strengthens bp’s bioenergy portfolio, enabling it to produce around 50,000 barrels of ethanol daily. This move aligns with bp’s strategy to integrate trading and technology capabilities for enhanced value creation.
Bunge Global SA has completed the previously announced sale of its 50% share in BP Bunge Bioenergia to bp, which now owns 100% of the business. Bunge Bioenergia is one of Brazil’s leading biofuel-producing companies. The acquisition was announced in January this year.
bp is now sole owner of the industrial scale sugarcane and ethanol business, enabling it to accelerate value creation through integration with bp’s trading and technology capabilities.
The enterprise value of the stake to be acquired is approximately $1.4 billion.
The acquisition meets bp’s expected returns threshold for bioenergy of more than 15% and is fully accommodated within bp’s disciplined financial framework, including capex targets of around $16 billion in each of 2024 and 2025.
bp is expected to have the capacity to produce around 50,000 barrels a day of ethanol equivalent from sugarcane through bp Bunge Bioenergia’s 11 agro-industrial units across five Brazilian states.
The company operates with an integrated business model that covers the entire production chain through to sales of ethanol and sugar.
Emma Delaney, bp’s executive vice president, customers and products said: “bp Bunge Bioenergia is widely recognised as a leader in the industry. I am excited by the opportunity for bp to now add further value from our trading and technology capabilities. bp was an early entrant into the bioenergy business in Brazil and we look forward to continuing to grow and develop here.
“Focusing our plans to develop new biofuels projects is also driven by value. Taken together, these changes can enable us to deliver the growth and returns we expect from biofuels, but in a simpler, more focused way. This is fully in line with bp’s priorities of driving focus into the business and growing shareholder returns.”
Source: https://www.bioenergy-news.com/news/bp-completes-bunge-bioenergia-acquisition/
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