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Bunge has entered into definitive agreements to sell its 50% share in BP Bunge Bioenergia to BP, its joint venture partner.

BP Bunge Bioenergia was formed in 2019, combining both companies’ Brazilian bioenergy and sugarcane ethanol businesses with a total of 11 mills across the southeast, north and midwest regions of Brazil.

When the transaction is closed, expected to happen in the fourth quarter of 2024, BP will own 100% of the business. This second and final monetisation event of Bunge’s ownership in the business is expected to yield net proceeds close to $800 million, depending on timing of closing and customary closing adjustments.

Bunge’s CEO, Greg Heckman, commented: “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.”

Closing of the transaction is subject to customary conditions, including receipt of required regulatory approvals. JP Morgan is acting as exclusive financial advisor to Bunge, and Tauil & Chequer Advogados associated with Mayer Brown, is acting as legal counsel.

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