Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

BP, Bunge to sell Brazil sugar and ethanol venture - report

Published 09/08/2022, 12:13
Updated 09/08/2022, 16:22
© Reuters. Logo of British Petrol BP is seen e at petrol station in Pienkow, Poland, June 8, 2022. REUTERS/Kacper Pempel
BP
-
BP
-
BG
-
VENM
-
1ZEc1
-
BPEz
-
BP_pb
-
BP_p
-

SAO PAULO (Reuters) -British oil major BP (LON:BP) and U.S. commodities trader Bunge Ltd have put their Brazilian sugar and ethanol joint venture BP Bunge Bioenergia up for sale, newspaper Valor Economico reported on Tuesday.

Abu Dhabi's Mubadala and Brazilian energy company Raizen SA - a joint venture of Shell (LON:RDSa) and Cosan SA - were among those interested to buy the company, said the report, citing sources familiar with the matter.

JPMorgan (NYSE:JPM) will advise BP Bunge on the deal, Valor said, adding that the company's assets were valued at between 9 billion and 10 billion reais ($1.96 billion).

In a statement sent to Reuters, Bunge reiterated it was assessing options to exit its participation in the sugar and bioenergy joint venture, as previously disclosed by the company, but did not provide details on how that could happen.

"While we are pleased with how the business is performing, it is not core to our overall business strategy," Bunge said.

BP, Raizen and JPMorgan declined to comment, while Mubadala did not immediately respond to a request for comment.

© Reuters. Logo of British Petrol BP is seen e at petrol station in Pienkow, Poland, June 8, 2022. REUTERS/Kacper Pempel

BP and Bunge's deal to create the 50-50 joint venture, managing 11 plants with a total capacity to crush 32 million tonnes of sugarcane per year, was first announced in 2019.

($1 = 5.1110 reais)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.