Bunge Global SA has signed definitive agreements to sell its 50% stake in BP Bunge Bioenergia to its joint venture partner, BP. BP Bunge Bioenergia, established in 2019, combined both companies’ Brazilian bioenergy and sugarcane ethanol businesses, with 11 mills located across Brazil's Southeast, North, and Midwest regions. The transaction, expected to close in the fourth quarter of 2024, will make bp the sole owner of the business.
Greg Heckman, Bunge’s Chief Executive Officer, stated, “We are pleased with the way the business is operating and the great work the team has done to become a leader in sugar and bioenergy since we created this joint venture with bp. However, this business is not core to Bunge’s long-term strategy and this transaction will allow us to focus and invest in our core businesses while also further strengthening our balance sheet. bp has been a valued partner to Bunge, and we wish them and the team continued success.”
The sale is expected to generate net proceeds close to $800 million for Bunge, subject to the timing of the closing and customary closing adjustments. The transaction is contingent upon customary conditions, including regulatory approvals.
J.P. Morgan is serving as the exclusive financial advisor to Bunge, with Tauil & Chequer Advogados, associated with Mayer Brown, acting as legal counsel.
