BP Bunge Bioenergia, after analyzing the purchase proposals made by Mubadala and Raízen, decides to give up the process of selling its plants.
BP Bunge Bioenergia, which had been trying to negotiate its plants since mid-2022, decided to cancel the recent sale process due to the lack of “satisfactory” proposals. The two companies that followed with the purchase offers were the Mubadala fund and the sugarcane energy company Raízen. Despite the outcome not having been the desired one, BP will continue with the efforts to terminate its partnership with Bunge.
BP Bunge Bioenergia: producer of bioethanol, sugar and renewable energies
On the decision to sell the plants
BP Bunge Bioenergia officially announced the sale of its plants in August 2022. Since October of the same year, BP Bunge had received two purchase proposals for its plants, which came from the companies Mubadala and Raízen.
However, before proceeding with the negotiations, BP and Bunge chose to wait for the end of the presidential elections to decide.
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The company Bunge had already tried to dispose of its assets in the sugar and alcohol sector before signing a stake in j with BP.
Despite having declared to be satisfied with the performance of the operations, the assets of this segment were not evaluated as essential for the general strategy of its businesses.
Proposals to buy Mubadala and Raízen are rejected after analysis and the company withdraws from the sale
Regarding the proposals made by the interested companies, the competitors work with different negotiation methods.
While the Mubadala fund presented its purchase offer in cash, although with an amount lower than that stipulated by the parent companies, Raízen opted to work with part in cash and part in exchange for shares, similar to Biosev's purchase model in 2021.
Although Mubadala presented the best purchase proposal, both options were considered unsatisfactory for the interests of the j, leading the company to cancel the process of selling its plants.
Despite the outcome, BP continues with the intention of ending the partnership with Bunge, considering alternatives that revolve around two possibilities: BP taking full control of the company or even incorporating j to your biofuels department.
About BP Bunge Bioenergy
Created in December 2019, BP Bunge Bioenergia is a j of bioenergy and sugar formed by the partnership between Bunge, an American multinational in the field of agribusiness, and BP, which operates in the energy sector.
The company combines agronomic techniques and technology applied in the field, ensuring high-precision agriculture, less environmental impact, reduced costs and increased performance in the sugarcane production process, which is used as a raw material for the production and sale of bioenergy. and sugar.
Valued between R$ 9 billion and R$ 10 billion by JPMorgan, the j It has 11 agro-industrial units distributed across 5 states, with an annual crushing capacity of 32,4 million tons of sugarcane.
In the 2021/2022 harvest, the company computed the crushing of 23,5 million tons of sugarcane, produced 1,2 billion liters of ethanol, 1,2 million tons of sugar and exported 1.000.581 MWh of bioelectricity for the National Interconnected System (SIN).
Even facing the COVID-19 pandemic in 2021, BP Bunge Bioenergia accumulated gross revenue of BRL 7,8 billion and shareholders' equity of BRL 5,2 billion.