BP assumes full control of BP Bunge Bioenergia in billion-dollar deal

Bunge Global announced the sale of its 50% stake in BP Bunge Bioenergia SA to BP, its joint venture partner. Upon completion of the deal, BP will become the sole owner of shares in BP Bunge Bioenergia, a venture that has united the companies' bioenergy and sugarcane ethanol businesses in Brazil since 2019.

BP Bunge Bioenergia has 11 operational units located in the Southeast, North and Center-West regions of Brazil. The deal is expected to be completed in the fourth quarter of 2024.

"We are pleased with the performance of the business and the team's excellent work in becoming a leader in sugar and bioenergy since the creation of the joint venture with BP. However, this business is not central to Bunge's long-term strategy, and this transaction will allow us to focus and invest in our core businesses, as well as further strengthening our balance sheet. BP has been a valued partner for Bunge, and we wish them and the team continued success," commented Greg Heckman, CEO of Bunge. Bunge.

Bunge expects to receive a value close to US$800 million (more than R$4 billion) from the deal. Completion of the transaction is conditional on the fulfillment of customary conditions, including obtaining the necessary regulatory approvals.

With the acquisition of shares in BP Bunge Bioenergia, BP reinforces its position in the bioenergy sector in Brazil, a strategic market for the production of ethanol from sugar cane.

"BP pioneered the bioenergy business in Brazil and we hope to continue to grow and develop in the country. We are focusing our plans on developing new biofuels projects driven by the search for value. Taken together, these changes could allow us to achieve the growth and returns we expect from the biofuels business, but in a simpler and more focused way. This is fully aligned with the company's priorities of focusing on the business and increasing shareholder returns,” said Emma Delaney, vice-president. executive president of BP's customer and product segment.

BP Bunge Bioenergia was created in December 2019 from the union of the bioenergy and sugar businesses of the BP and Bunge groups in Brazil. In the announcement of the creation of the “joint venture”, Bunge informed that it would receive the amount of US$ 775 million as a result of the deal, made up of US$ 700 million relating to Bunge's debts assumed by the "joint venture" and US$ 75 million paid by BP.