BP and Bunge Merge Brazilian Operations and Create World-class Biofuel Player

The combined business will be ranked as the second-largest player in the sugarcane ethanol biofuel industry in Brazil. The country is the world’s second-largest and most integrated market for ethanol as a transportation fuel, with demand forecast to grow rapidly.

RIO DE JANEIRO, BRAZIL - U.S. commodities trader Bunge, a leader in agriculture, food and ingredients, and British energy company BP have agreed to form a 50:50 joint venture that will create a leading bioenergy company in Brazil, one of the world’s largest fastgrowing markets for biofuels.

“Brazil is the Saudi Arabia of biofuel,” BP’s head of Alternative Energy, Dev Sanyal, told Reuters.

BP’s interest in the new venture will swell its existing biofuels business by more than 50 percent. The new company is expected to be headquartered in São Paulo.

Bunge will receive cash . . .

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