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BP To Acquire Major Interest In Companhia Nacional de Acucar e Alcool (CNAA) In Brazil
GlobalData, April 2011, Pages: 5
BP To Acquire Major Interest In Companhia Nacional de Acucar e Alcool (CNAA) In Brazil - Deal Analysis from GlobalData
Summary
BP p.l.c (BP), has announced its acquisition of a majority stake in Companhia Nacional de Acucar e Alcool (CNAA). The total value of acquisition is approximately $680m and BP has also agreed to refinance 100% of CNAA's existing long term debt. After the acquisition, BP will become the operator of three bioethanol and sugarcane producing plants. Out of which, two are operational and one is currently in construction. It is expected that when CNAA’s assets become fully operational, it will increase BP’s overall Brazilian production capacity to around 1.4 billion liters of ethanol equivalent per year (or nine million barrels), which would be significantly up from the current production capacity of 435 million liters. BP will also have the capacity to export approximately 340GWh of electricity per year to the grid.
Scope
- BP has announced its acquisition of 83% stake in the Companhia Nacional de Acucar e Alcool (CNAA) with the purchase consideration of $680m and also agreed to refinance 100% of existing long term debt of CNAA. Under the terms of the agreement, the CNAA will acquire two operating plants in Goias state and one under construction plant in minas Gerais state. The acquisition will make BP one of the major suppliers of bioethanol in the Brazilian market as well as international markets.
Reasons to buy
- This deal analysis will give the detailed information about the acquisition of major interest of CNAA by BP.
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