Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexCryptocurrenciesCybersecurityPress Releases

Mubadala, Raizen in final round to buy BP-Bunge Brazilian ethanol venture- source

08/11/2022 | 12:15pm EDT

SAO PAULO (Reuters) -UAE state investor Mubadala Investment Co and energy company Raizen SA are in the final round to acquire Brazilian ethanol joint venture BP Bunge Bioenergia, the world's third-largest sugarcane processor, one source with knowledge of the matter said on Wednesday.

There are no other bidders in the second round and former proposals from other companies were disqualified, the source said, asking for anonymity to disclose private talks.

Shareholders BP PLC and Bunge Ltd decided to negotiate with both bidders in a second phase because the difference between their proposals was very small, according to the source. There are parallel negotiations with both.

Although the deal is in its final stages, there is no clear deadline for reaching an agreement, nor a guarantee that a sale will be signed.

BP declined to comment. Mubadala and JPMorgan did not immediately comment on the matter. Raizen, a joint venture between Shell and Cosan SA declined to comment. Bunge said it "continues to assess options to exit our participation in our sugar and bioenergy joint venture".

Bunge has been trying to divest from its ethanol plants in Brazil for a while. In 2018, it considered an initial public offering before entering the joint venture with BP.

The deal gave BP a role in Brazil's ethanol market and already had clauses on exit rights after 18 months.

Brazilian newspaper Valor Economico reported on Tuesday about the sale and the interest from Mubadala and Raizen. BP Bunge Bioenergia owns 11 producing units with 33 million tonnes of sugar cane crushing capacity.

BP Bunge Bioenergia could be worth $1.8 billion, considering an industry average of $55 per tonne of crushing capacity.

This would be Mubadala´s first investment in ethanol in Brazil. The fund owns in the United States Enviva Partners, which produces wood pellets used for power generation.

Raizen, already the largest ethanol producer in the country, would consolidate its leadership.

($1 = 5.0849 reais)

(Reporting by Tatiana Bautzer in Sao Paulo; additional reporting by Marcelo Teixeira in New York; Editing by Stephen Coates, Kirsten Donovan)

By Tatiana Bautzer


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
BP PLC 0.24% 433.1 Delayed Quote.30.73%
BUNGE LIMITED 1.22% 83.28 Delayed Quote.-11.91%
COSAN S.A. 1.88% 17.35 Delayed Quote.-21.39%
ENVIVA INC. -1.05% 60.925 Delayed Quote.-12.57%
POWER SOLUTIONS, LTD. -0.40% 2520 Delayed Quote.7.88%
S&P GSCI SUGAR INDEX -0.68% 185.7896 Real-time Quote.-5.88%
SHELL PLC 0.22% 2246.5 Delayed Quote.38.21%
Latest news "Economy & Forex"
01:00pNATO says Putin's 'serious escalation' will not deter it from supporting Ukraine
RE
12:58pSpain's Caixabank to cut stake in Telefonica to about 3.5% from 4.5%
RE
12:57pRussian military showing increased frailty in Ukraine war -British military chief
RE
12:55pSouth African rand weakens after local trade data disappoints
RE
12:51pHundreds of gig driver jobs under threat in Spain as new rules kick in
RE
12:48pTwo thirds of U.S. adults don't plan on getting COVID boosters soon -poll
RE
12:48pEuropean telcos set to win fight with Big Tech, could set global agenda
RE
12:47pNasdaq boosted by Tesla, rate hike worries linger
RE
12:46pU.S. wheat harvest falls below forecasts; prices rally
RE
12:44pBarkin: "promising signs" on inflation but progress won't be immediate
RE
Latest news "Economy & Forex"