BP announced that it has agreed to acquire majority control of the Brazilian ethanol and sugar producer Companhia Nacional de Açúcar e Álcool (CNAA).
When CNAA’s assets are fully developed, this is expected to increase BP’s overall Brazilian production capacity to around 1.4 billion litres of ethanol equivalent per year (nine million barrels).
BP has agreed to pay approximately US$680 million to acquire 83% of the shares of CNAA and to refinance 100% of CNAA's existing long term debt.
After the acquisition, which is subject to regulatory approval and agreed closing conditions, BP will become the operator of two producing ethanol mills, located in Goiás and Minas Gerais states.
A third CNAA mill is currently under development in Minas Gerais state.
“Low carbon energy will play an increasingly significant role in meeting world energy demand. BP is committed to producing biofuels to help meet this demand.
Today's transaction also fits BP's strategy of increasing our exposure to growing energy markets,” said Carl-Henric Svanberg, chairman of BP.
