Bunge, BP to Form Brazil Bioenergy Venture
22 Julho 2019 - 8:26AM
Dow Jones News
By Colin Kellaher
Bunge Ltd. (BG) on Monday said it agreed to form a joint venture
with BP PLC (BP) to create the second-largest bioenergy company in
Brazil in terms of effective crushing capacity.
Bunge said it will receive cash proceeds of $775 million in the
deal, including $700 million in respect of nonrecourse Bunge debt
to be assumed by the venture and $75 million from BP.
The White Plains, N.Y., agribusiness company said the venture,
to be called BP Bunge Bioenergia, will operate on a stand-alone
basis and have 11 mills in Brazil. The venture will have 32 million
metric tons of combined annual crushing capacity and the
flexibility to produce a mix of ethanol and sugar, the company
said.
Bunge said it will no longer consolidate its sugar and bioenergy
operations in Brazil in its consolidated financial statements,
instead accounting for its interest in the venture under the equity
method.
Bunge said it will use proceeds from the transaction, which it
expects to complete in the fourth quarter, to reduce debt,
resulting in a stronger balance sheet and greater financial
flexibility.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
July 22, 2019 07:11 ET (11:11 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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