BP Enters Bioenergy Joint Venture With Bunge for $75 Million
22 Julho 2019 - 8:28AM
Dow Jones News
By Oliver Griffin
BP PLC (BP.LN) said Monday that it has entered a joint venture
with Bunge Ltd. (BG) to build a bioenergy company in Brazil,
growing the U.K. oil company's biofuels business by more than
50%.
The integrated oil-and-gas company said it will pay $75 million
to Bunge on the formation of the 50-50 joint venture, which will be
known as BP Bunge Bioenergia.
BP said the joint venture will assume $700 million worth of
nonrecourse debt associated with Bunge's assets. The deal is
expected to close in the fourth quarter of the year, subject to
regulatory approval.
The company will produce ethanol from sugarcane--around 70% of
vehicles in Brazil can run on ethanol--and sugar. It will also be
able to produce electricity from the waste biomass of the
sugarcane.
BP Bunge Bioenergia is expected to be headquartered in Sao
Paulo, Brazil. BP's Mario Lindenhayn and Marcus Schlosser will
assume the roles of chairman and CFO, while Bunge's Geovane Consul
will serve as CEO.
BP and Bunge will have equal representation on the board of
directors, the company said.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
July 22, 2019 07:13 ET (11:13 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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