Monday, March 14, 2011

BP (BP) Buys Majority of Brazilian Ethanol Producer

BP (NYSE:BP) announced it has acquired a majority stake in Cia. Nacional de Acucar & Alcool (CNAA), a Brazilian ethanol and sugar producer, for $680 million.

CEO Robert Dudley said in a statement, “This strategic acquisition underlines BP’s commitment to building material businesses in growing economies and continued expansion in Brazil through exploration and production, as well as biofuels investments. This is the biggest acquisition to date for BP Alternative Energy as we continue to build a leading low carbon fuels business.”

The giant oil company is still waiting on the Brazilian government to approve its acquisition of offshore exploration licenses in Brazil in 2010 from Devon Energy (NYSE:DVN).

What BP gains control of in the CNAA deal is two producing ethanol mills in the Brazilian states of Goias and Minas Gerais. A third mill is being constructed at Minas Gerais as well.

BP closed Friday at $45.75, up $0.09, or 0.20 percent.

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