July 24, 2019 |
BP and Bunge said they have agreed to form a bioenergy joint venture in Brazil and create the second largest sugarcane processing company in the country.
The new company, called BP Bunge Bioenergia, will take on $700m in debt from Bunge, while BP will pay $75m to the US agricultural business as part of the deal. Bunge will use the money to pay off debt, it said in a statement.
"This partnership... allows us to reduce our current exposure to sugar milling, strengthen our balance sheet and focus
US agribusiness transfers $700m in debt to the new joint venture and receives $75m from the British oil company as part of the deal