Bunge Global SA (NYSE: BG) has announced the sale of its 50% ownership share in BP Bunge Bioenergia, a joint venture with bp, to bp. The joint venture combined both companies' Brazilian bioenergy and sugarcane ethanol businesses with a total of 11 mills located across the Southeast, North, and Midwest regions of Brazil. At the closing, which is expected to occur in the fourth quarter of 2024, bp will own 100% of the business.
The sale is expected to yield net proceeds close to $800 million, depending on the timing of closing and customary closing adjustments. The closing of the transaction is subject to customary conditions, including the receipt of required regulatory approvals.
Bunge's Chief Executive Officer Greg Heckman expressed satisfaction with the business's performance and the team's achievement in becoming a leader in sugar and bioenergy since the joint venture's creation with bp. However, Heckman noted that the business is not core to Bunge's long-term strategy, and the transaction will allow them to focus and invest in their core businesses while further strengthening their balance sheet.
J.P. Morgan is acting as the exclusive financial advisor to Bunge, and Tauil & Chequer Advogados associated with Mayer Brown is acting as legal counsel.
The announcement comes as Bunge continues to work towards its purpose to connect farmers to consumers to deliver essential food, feed, and fuel to the world. With unmatched global scale and deeply rooted relationships, the company operates across approximately 300 facilities in more than 40 countries.
The press release did not provide specific financial metrics or comparisons from the previous period. As a result of these announcements, the company's shares have moved 1.9% on the market, and are now trading at a price of $107.86. For more information, read the company's full 8-K submission here.
