Bunge Completes Sale of its Ownership Share in BP Bunge Bioenergia Joint Venture in Brazil

Rhea-AI Summary

Bunge Global SA (NYSE: BG) has announced the completion of the previously disclosed sale of its 50% stake in BP Bunge Bioenergia to bp. As a result of this transaction, bp now owns 100% of the business. The joint venture, which operated in Brazil, has now fully transitioned to bp's ownership. This move aligns with Bunge's strategic decisions regarding its portfolio management and asset allocation.

Positive

• Successful completion of the sale of 50% stake in BP Bunge Bioenergia
• Potential for improved capital allocation and focus on core business operations

Negative

• Loss of 50% ownership in a Brazilian bioenergy venture
• Potential reduction in diversification and exposure to the Brazilian renewable energy market

Insights

Financial Analyst

The completion of Bunge's sale of its 50% stake in BP Bunge Bioenergia to bp marks a significant strategic shift for the company. While the financial terms weren't disclosed, this divestment likely provides Bunge with additional capital to reinvest in its core business or strengthen its balance sheet. The move aligns with Bunge's strategy to streamline operations and focus on its primary strengths in agribusiness and food processing.

For investors, this transaction could signal improved capital allocation and a more focused business model. However, it's important to consider the potential loss of revenue streams and market presence in Brazil's bioenergy sector. The long-term impact will depend on how Bunge redeploys the proceeds and whether the exit from this joint venture leads to enhanced profitability and shareholder value creation.

While this development is noteworthy, without specific financial details, it's challenging to quantify the immediate impact on Bunge's financials. Investors should watch for any guidance updates or changes in the company's strategic direction following this divestment.

ST. LOUIS--(BUSINESS WIRE)-- Bunge Global SA (NYSE: BG) announced today it has completed the previously announced sale of its 50% share in BP Bunge Bioenergia to bp, which now owns 100% of the business.

About Bunge

At Bunge (NYSE: BG), our purpose is to connect farmers to consumers to deliver essential food, feed and fuel to the world. With more than two centuries of experience, unmatched global scale and deeply rooted relationships, we work to strengthen global food security, increase sustainability where we operate, and help communities prosper. As a world leader in oilseed processing and a leading producer and supplier of specialty plant-based oils and fats, we value our partnerships with farmers to bring quality products from where they’re grown to where they’re consumed. At the same time, we collaborate with our customers to develop tailored and innovative solutions to meet evolving dietary needs and trends in every part of the world. Our Company has its registered office in Geneva, Switzerland and its corporate headquarters in St. Louis, Missouri. We have approximately 23,000 dedicated employees working across approximately 300 facilities located in more than 40 countries.

Website Information

We routinely post important information for investors on our website, www.bunge.com, in the "Investor Center" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Cautionary Statement Concerning Forward Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward looking statements to encourage companies to provide prospective information to investors. This press release includes forward looking statements that reflect our current expectations and projections about our future results, performance, prospects and opportunities. Forward looking statements include all statements that are not historical in nature. We have tried to identify these forward looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward looking statements. The following factors, among others, could cause actual results to differ from these forward looking statements: the impact on our employees, operations, and facilities from the war in Ukraine and the resulting economic and other sanctions imposed on Russia, including the impact on us resulting from the continuation and/or escalation of the war and sanctions against Russia; the effect of weather conditions and the impact of crop and animal disease on our business; the impact of global and regional economic, agricultural, financial and commodities market, political, social and health conditions; changes in government policies and laws affecting our business, including agricultural and trade policies, financial markets regulation and environmental, tax and biofuels regulation; the impact of seasonality; the impact of government policies and regulations; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, divestitures, joint ventures and strategic alliances, including without limitation Bunge’s pending business combination with Viterra Limited (“Viterra”); the impact of industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products that we sell and use in our business, fluctuations in energy and freight costs and competitive developments in our industries; the effectiveness of our capital allocation plans, funding needs and financing sources; the effectiveness of our risk management strategies; operational risks, including industrial accidents, natural disasters, pandemics or epidemics and cybersecurity incidents; changes in foreign exchange policy or rates; the impact of our dependence on third parties; our ability to attract and retain executive management and key personnel; and other factors affecting our business generally.

The forward looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward looking statements to reflect subsequent events or circumstances.

You should refer to "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 22, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241001119994/en/

Media Contact:

Bunge News Bureau

Bunge

636-292-3022

news@bunge.com

Investor Contact:

Ruth Ann Wisener

Bunge

636-292-3014

Ruthann.wisener@bunge.com

Source: Bunge Global SA

FAQ

What did Bunge (BG) sell to bp?

Bunge (BG) sold its 50% ownership share in the BP Bunge Bioenergia joint venture in Brazil to bp.

How much of BP Bunge Bioenergia does bp now own?

Following the completion of the sale, bp now owns 100% of BP Bunge Bioenergia.

Where was the BP Bunge Bioenergia joint venture located?

The BP Bunge Bioenergia joint venture was located in Brazil.

When did Bunge (BG) complete the sale of its stake in BP Bunge Bioenergia?

Bunge (BG) announced the completion of the sale on the date of the press release, though the specific date is not mentioned in the provided information.