ST. LOUIS, MISSOURI, US – Bunge Global SA is selling its 50% share in BP Bunge Bioenergia to BP, its partner in the joint venture formed in 2019. The transaction is expected to close in the fourth quarter of 2024, at which time BP will own 100% of the industrial scale sugarcane and ethanol business.

The enterprise value of the stake to be acquired is approximately $1.4 billion, BP said. The acquisition will result in consolidation of 100% of the venture’s financial results, including net debt of approximately $500 million and lease obligations of approximately $700 million.

“We are pleased with the way the business is operating and the great work the team has done to become a leader in sugar and bioenergy since we created this joint venture with BP,” said Greg Heckman, chief executive officer of St. Louis, Missouri-based Bunge. “However, this business is not core to Bunge’s long-term strategy, and this transaction will allow us to focus and invest in our core businesses while also further strengthening our balance sheet. BP has been a valued partner to Bunge, and we wish them and the team continued success.”