08:40 AM EDT, 06/20/2024 (MT Newswires) -- (Adds additional information in third and fourth paragraphs.)

BP (BP) has agreed to take full ownership of BP Bunge Bioenergia, its Brazilian biofuels joint venture, acquiring Bunge's (BG) 50% interest, the company said Thursday.

The enterprise value of the stake to be acquired is about $1.4 billion, BP said.

After the transaction, the company said it would have the capacity to produce around 50,000 barrels a day of ethanol equivalent from sugarcane through BP Bunge Bioenergia's 11 mills across Brazil.

The acquisition, expected to close by the end of 2024, will contribute to BP's 2025 earnings before interest, taxes, depreciation and amortization targets of around $2 billion from bioenergy and $3 billion to $4 billion across all its transition growth engines, BP said.

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