BP, Bunge put Brazil sugar and ethanol business up for sale, Valor Economico reports

Logo of British Petrol BP is seen at petrol station in Pienkow, Poland, June 8, 2022. REUTERS/Kacper Pempel

SAO PAULO, Aug 9 (Reuters) – British oil major BP (BP.L) and US commodities trader Bunge Ltd (BG.N) have put their Brazilian sugar and ethanol joint venture BP Bunge Bioenergia up for sale, newspaper Valor Economico reported on Tuesday.

The report, citing sources familiar with the matter, said Abu Dhabi’s Mubadala (MUDEV.UL) and Brazilian energy company Raizen SA (RAIZ4.SA) – a joint venture between Shell (SHEL.L) and Cosan SA (CSAN3.SA) – were among those interested in buying the business.

JPMorgan has been hired to advise BP Bunge on the deal, Valor said, adding that the company’s assets were valued at between 9 billion and 10 billion reais ($1.96 billion).

BP and Raizen declined to comment, while Bunge, Mubadala and JPMorgan did not immediately respond to Reuters emailed requests for comment.

BP and Bunge’s deal to create the 50-50 joint venture, managing 11 plants with a total capacity to crush 32 million tons of sugarcane per year, was first announced in 2019.

($1 = 5.1110 reais)

Reporting by Gabriel Araujo; Editing by Kirsten Donovan

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