BP p.l.c. (LSE:BP.) has entered into definitive agreement to acquire remaining 50% stake in BP Bunge Bioenergia S.A. from Bunge Global SA (NYSE:BG) at an enterprise value of approximately $1.4 billion on June 19, 2024. The enterprise value of the stake to be acquired is approximately $1.4 billion. Upon completion, Upon completion, bp will become sole owner of the industrial scale sugarcane and ethanol business, enabling bp to accelerate value creation through integration with bp?s trading and technology capabilities and BP p.l.c. will own 100% stake in BP Bunge Bioenergia S.A. The enterprise value of the stake to be acquired is approximately $1.4 billion. The acquisition will result in consolidation of 100% of the venture?s financial results, including net debt of approximately $0.5 billion and lease obligations of approximately $0.7 billion. The purchase price is subject to customary closing adjustments. For the year-end 2023, bp Bunge Bioenergia unaudited adjusted EBITDA (as defined in the bp Annual Report and Form 20-F 2023) was $0.8 billion. Following completion, bp will have the capacity to produce around 50,000 barrels a day of ethanol equivalent from sugarcane through bp Bunge Bioenergia?s 11 agro-industrial units across five Brazilian states.

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