Back to top

Image: Bigstock

Bunge Global (BG) to Sell Its 50% Stake in BP Bunge Bioenergia

Read MoreHide Full Article

Bunge Global SA (BG - Free Report) announced that it signed a deal with its joint venture partner, BP plc (BP - Free Report) , to sell its 50% share in BP Bunge Bioenergia. As a result of this deal, the company will no longer have any interest in its bioenergy and sugarcane ethanol businesses in Brazil. This move is expected to help BG focus on its core businesses.

Bunge and BP created the joint venture, BP Bunge Bioenergia, in 2019 by merging the two companies' Brazilian bioenergy and sugarcane ethanol businesses. It operates 11 mills in the Southeast, North and Midwest areas of Brazil. Following the sale, BP will become the sole owner of BP Bunge Bioenergia.   

The deal is expected to close by the end of the fourth quarter of 2024. The second and final monetization event of Bunge Global's shareholding in the business is estimated to generate net proceeds of $800 million, depending on the timing of closing and usual closing adjustments.

The transaction will allow the company to strengthen its balance sheet and focus and invest in its core businesses.

Bunge reported first-quarter 2024 adjusted earnings of $3.04 per share, which surpassed the Zacks Consensus Estimate of $2.55. The bottom line fell 7% year over year. Net sales were $13.4 billion in the quarter under review, down 12.5% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $13.78 billion.

Price Performance

Shares of Bunge Global have gained 17% over the past year compared with the industry's growth of 9.9%.


Zacks Investment Research
Image Source: Zacks Investment Research


Zacks Rank & Stocks to Consider

Bunge Global currently carries a Zacks Rank #3 (Hold).

Two better-ranked stocks from the basic materials space are Ero Copper Corp. (ERO - Free Report) and Ecolab Inc. (ECL - Free Report) . ERO sports a Zacks Rank #1 (Strong Buy) at present and ECL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ero Copper’s 2024 earnings is pegged at $1.66 per share. The consensus estimate for 2024 earnings has moved 20.3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 53.9%. ERO shares have gained 9.5% in a year.

The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.59 per share, indicating an increase of 26.5% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.3%. ECL shares have gained 34.5% in a year.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

BP p.l.c. (BP) - free report >>

Ecolab Inc. (ECL) - free report >>

Bunge Global SA (BG) - free report >>

Ero Copper Corp. (ERO) - free report >>

Published in