BP to raise stake in Brazilian ethanol producer

BP has agreed to acquire an additional 3% share of Brazilian sugar and ethanol producer Companhia Nacional de Acucar e Alcool (CNAA) from LDC Bioenergia S.A. for approximately USD 25 million. Following the acquisition of 83% of the shares of CNAA in April 2011 and the subsequent conversion of CNAA’s long-term debt to equity, BP will own 99.97% of the shares of the company; the remaining shares are owned by minority private shareholders. The acquisition is subject to agreed closing conditions. Since April 2011, BP has been the operator of the CNAA mills in Itumbiara, Goias and Ituiutaba, Minas Gerais which will supply both Brazilian and international markets with ethanol.

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