BP acquires majority control of Brazilian ethanol producer

London-based oil and gas company BP has agreed to acquire majority control of the Brazilian ethanol and sugar producer Companhia Nacional de Açúcar e Álcool (CNAA).

When CNAA’s assets are fully developed, this is expected to increase BP’s overall Brazilian production capacity to around 1.4 billion litres of ethanol equivalent per year, equalling nine million barrels.

BP has agreed to pay approximately $680m (£422.7m) to acquire 83 per cent of the shares of CNAA and to refinance 100 per cent of CNAA’s existing long term debt.

After the acquisition, which is subject to regulatory approval and agreed closing conditions, BP will become the operator of two producing ethanol mills, located in Goiás and Minas Gerais states.