It’s a match made to help take on energy rivals in Brazil.
BP plc (NYSE:BP) and Bunge Limited (NYSE:BG) today announced that they have completed the formation of BP Bunge Bioenergia, the Brazilian bioenergy joint venture that combines their Brazilian bioenergy and sugarcane ethanol businesses.
BP Bunge Bioenergia is now the second largest operator by effective crushing capacity in the Brazilian bioethanol market.
As part of the transaction, Bunge received cash proceeds of $775 million, comprising of $700 million of non-recourse Bunge debt that was assumed by the joint venture at closing, and $75 million from BP, before customary closing adjustments.
The proceeds were used to reduce outstanding indebtedness under the Company's credit facilities. The non-recourse debt was arranged by a syndicate of banks, led by Sumitomo Mitsui Banking Corporation, ABN Amro Bank N.V. and ING Bank N.V.
Bunge boasts a status as a world leader in sourcing, processing and supplying oilseed and grain products and ingredients. Founded in 1818, Bunge's expansive network feeds and fuels a growing world, creating sustainable products and opportunities for more than 70,000 farmers and the consumers they serve across the globe.
The company is headquartered in New York and has 31,000 employees worldwide who stand behind more than 360 port terminals, oilseed processing plants, grain silos, and food and ingredient production and packaging facilities around the world.
BP gained 15 cents a share to $37.57, while BG shares eked ahead eight cents to $53.46.
