BP Doubles Down On Biofuels: Buys Out Bunge Bioenergia for $1.4B
Portfolio Pulse from Lekha Gupta
BP p.l.c. (NYSE:BP) is acquiring Bunge Global SA's (NYSE:BG) 50% stake in their joint venture, BP Bunge Bioenergia S.A., for $1.4 billion. This move will consolidate BP's control over the venture, enhancing its biofuels production capacity and supporting its strategic growth in bioenergy. Bunge expects net proceeds of $800 million from the sale.
June 20, 2024 | 3:54 pm
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POSITIVE IMPACT
Bunge expects net proceeds of $800 million from selling its 50% stake in BP Bunge Bioenergia to BP for $1.4 billion.
Bunge will receive net proceeds of $800 million from the sale, which is a significant financial gain and completes its monetization of the business.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
BP's acquisition of Bunge's stake in BP Bunge Bioenergia for $1.4 billion will consolidate its control over the venture, enhancing its biofuels production capacity and supporting its strategic growth in bioenergy.
The acquisition will allow BP to consolidate 100% of the venture’s financial results, enhancing its biofuels production capacity and supporting its strategic growth in bioenergy. This aligns with BP's capital expenditure targets and expected bioenergy returns.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to BP's biofuels growth through the First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (ARCA: EIPX).
The First Trust Energy Income Partners Strategy ETF includes BP, providing investors with indirect exposure to BP's biofuels growth.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to BP's biofuels growth through the Direxion Hydrogen ETF (ARCA: HJEN).
The Direxion Hydrogen ETF includes BP, providing investors with indirect exposure to BP's biofuels growth.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50