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BP PLC — M&A Activity 2008
Apr 24, 2008
4622_rns_2008-04-24_10b0739d-f873-46d6-b767-59c4c8bec527.html
M&A Activity
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Ad-hoc | 24 April 2008 17:59
BP p.l.c.: Re Joint Venture
BP p.l.c. / Joint Venture
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
BP, SANTELISA VALE, AND MAEDA UNVEIL PLANS TO INVEST R$1.66 BILLION IN
BIOFUELS
BP announced today that it intends to take a 50 per cent stake in Tropical
BioEnergia SA, a joint venture established by Brazilian companies Santelisa
Vale and Maeda Group, which is constructing a 435 million litre (115
million US gallons) a year ethanol refinery in Edeia, Goias State, Brazil.
The joint venture, in which Santelisa Vale and Maeda Group would each hold
25 per cent, also intends to progress plans to build a second ethanol
refinery, investing a total of approximately R$1.66 billion (US$1 billion)
in the two refineries.
Assuming all the required approvals are received, BP will pay around R$100
million (US$59.8 million) for the 50 per cent stake, subject to working
capital adjustments, and provide funding for agreed future investment in
line with its shareholding. The parties said that they hoped to be able to
complete the transaction before the end of June 2008.
'This investment, the largest made by an international oil company in the
Brazilian ethanol industry, represents a significant step in delivering
BP's strategy for biofuels which centres around sustainable feedstocks that
do not impact on food supplies, and investing in research work to develop
the technologies required to produce advanced biofuels,' commented Phil
New, head of BP Biofuels. 'BP is delighted to be partnering with two
Brazilian companies with leading positions in their sectors and we look
forward to a long relationship with them.'
The joint venture will focus on potential sugarcane production and the
manufacturing and marketing of conventional ethanol, including the
associated agricultural assets and cogeneration plants. Sugarcane is the
most efficient source of biofuel currently available. Sugarcane lends
itself to further improvement through the use of advanced biofuels
technology and will therefore be a compelling source of renewable fuel for
the foreseeable future. It provides a greenhouse gas emissions reduction of
up to 80 per cent.
Operations at the first refinery are expected to commence during the second
half of 2008, with full capacity anticipated by mid-2010. The refineries
will be positioned to supply the Brazilian ethanol markets with the
potential to export to the demand markets of US, Europe and Asia.
Besides developing sustainable biofuels, the refineries are expected to be
able to sell surplus electricity, with each of them exporting at least 30
MW of surplus power from integrated bagasse cogeneration facilities. The
facilities are also intended to offer a potential platform for deploying
future technologies such as lignocellulosics and biobutanol.
The Maeda Group is one of the largest cotton producers in the world. 'BP's
decision to join Tropical Bioenergia in this new venture is significant,'
said Jorge Maeda, chief executive officer of Maeda Group. 'Today we are
demonstrating how Maeda's unique agriculture expertise, attendant network
of relationships, and knowledge of the region's soils, climate and rural
labor conditions combined with Santelisa Vale's sugarcane expertise can
provide sustainable renewable and reliable solutions for fuel.'
Santelisa Vale Group is the second-largest sugar cane crusher in Brazil and
the first in energy cogeneration from bagasse. As it already operates a
number of ethanol refineries, Santelisa Vale has expertise along the entire
value chain of ethanol/sugar production.
'BP's proven logistical, technological and fuel supply chain experience
will enable a significant enhancement of our strategic plans,' noted
Anselmo Lopes Rodrigues, chief executive officer of Santelisa Vale.
Notes to editors:
· Transport accounts for around 21 per cent of all carbon dioxide
emissions.
· BP is one of the world's largest energy companies, providing its
customers with fuel for transportation, energy for heat and light,
retail
services and petrochemicals products for everyday items. It is the
largest
oil and gas producer in the U.S. and one of the largest refiners. BP
also
has a global network of around 25,000 service stations.
· BP is a leading player in the global biofuels market. In the US, BP
has
blended and distributed 763 million US gallons of ethanol and about 1
million US gallons of biodiesel in 2007. In Europe, BP sold 344 million
litres of ethanol and 847 million litres of biodiesel in 2007. BP's
sales of biofuels in 2007 accounted for about 10 per cent of the global
biofuels market
· Maeda Group is recognized worldwide as being one of the most
vertically integrated players in the cotton value chain with 80 years
in the industry. The company has one of the few cotton seed crushing
businesses in Brazil, producing several products from cotton seeds:
vegetable oil, which contains no 'trans fat' and is used as input in
the food industry; linter (the material around the cotton seeds),
used for special products such as money paper and LCD screens; and
cotton seed meal, used as animal feed.
· Santelisa Vale, Brazil's second largest sugar and ethanol producer
and
first in energy cogeneration from bagasse, expects to crush 18 million
tons of sugar cane in 2008. The company will produce 25 million bags of
sugar and 770 million litres of ethanol. Santelisa Vale also produces
and sells a surplus of 420,000 Mwh of electricity from sugar cane
bagasse - enough to supply a population of one million per year. The
company, with over 70 years of history, is a leader in technology and
innovation within the segment.
· Santelisa Vale and Maeda Group were advised by ING Bank.
Further information:
· BP Press Office, London, tel: +44 (0)207 496 4076
· BP U.S. Press Office, Chicago, Tel: +1 630 821 3206
· BP Brazilian Office, Campinas, tel +55 19 3794 8357
· Maeda Press Office, tel: +55 11 2179 7380
· Santelisa Vale Press Office, tel: +55 16 3946-3924 or email:
[email protected]
· Ketchum Estrategia Assessoria de Comunicacao
Rafael Presilli / Adriana Toledo, tel:(11) 5096-4334 ext. 212/280 or
[email protected] / [email protected]
24.04.2008 Financial News transmitted by DGAP
Language: English
Issuer: BP p.l.c.
1 St James's Square
SW1Y 4PD London
Großbritannien
Phone: +44 (0) 207-496-4000
Fax: +44 (0) 207-496-4570
E-mail: [email protected]
Internet: www.bp.com
ISIN: GB0007980591
WKN: 850517
Listed: Freiverkehr in Berlin, Stuttgart, München, Hamburg,
Düsseldorf; Open Market in Frankfurt; Foreign Exchange(s) SWX
End of News DGAP News-Service