BP announces Companhia Nacional de Acucar e Alcool acquisition
BP has announced the acquisition of a Brazilian sugar manufacturer.
Merger and acquisition advisors may be required after BP announced it would acquire Brazilian ethanol and sugar manufacturer Companhia Nacional de Acucar e Alcool (CNAA).
In a move that sees the British firm expand its biofuels interests, it has agreed to pay $680 million (£421 million) for 83 per cent of CNAA.
BP also agreed to refinance 100 per cent of the Brazilian firm's existing long-term debt.
Commenting on the move, Carl-Henric Svanberg, chairman of the company, claimed low-carbon energy has an "increasingly significant" role to play in meeting global 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," he said.
CNAA currently owns three production units in Brazil, each one with a processing capacity of 2.5 million tons of sugarcane each year.
These facilities are at present concerned with the production of crystal sugar, hydrated alcohol and Anidro.