Bunge Global SA has finalized the sale of its 50% stake in BP Bunge Bioenergia to bp, granting the latter full ownership of one of Brazil's leading biofuel producers. The acquisition, first announced in January, comes at an enterprise value of approximately $1.4 billion.
With this acquisition, bp has integrated its sugarcane and ethanol business, positioning itself to enhance value creation through its trading and technology capabilities. The transaction aligns with bp's financial framework, which includes capital expenditure targets of around $16 billion for both 2024 and 2025.
Following the acquisition, bp Bunge Bioenergia is expected to have the capacity to produce approximately 50,000 barrels per day of ethanol equivalent from sugarcane. The business operates 11 agro-industrial units across five Brazilian states, utilizing an integrated model that covers the entire production chain, from sugarcane cultivation to the sale of ethanol and sugar.
Emma Delaney, bp's executive vice president for customers and products, expressed enthusiasm about the acquisition, noting bp Bunge Bioenergia's leadership in the industry and the potential for bp to leverage its trading and technology strengths. The company aims to focus its efforts on developing new biofuels projects that drive value and align with bp's commitment to enhancing shareholder returns.
