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BP Announces Acquisition of Additional Shares in Brazilian Sugar and Ethanol Producer CNAA

BP has today announced that it has agreed to acquire an additional 3 per cent share of Brazilian sugar and ethanol producer Companhia Nacional de Açúcar e Álcool (CNAA) from LDC Bioenergia S.A. for a price of approximately US$25 million.

Following the acquisition in April 2011 of 83 per cent of the shares of CNAA and subsequent conversion of CNAA’s long-term debt to equity, BP will own 99.97 per cent of the shares of the company – the remaining shares are owned by minority private shareholders. The acquisition is subject to agreed closing conditions.

“This is another step for our biofuels business in Brazil”, said Mario Lindenhayn, CEO of BP Biofuels in Brazil. “We have been operating these mills since April and the teams are working hard to integrate systems and processes to become part of BP.”

Key facts about the acquisition

• BP has agreed to pay approximately US$25 million in cash to acquire a 3 per cent stake in CNAA from LDC Bioenergia S.A.. This follows the previously announced acquisition of majority control of CNAA in April 2011. BP will own 99.97 per cent of shares in the company.

• Since April 2011, BP has been the operator of the CNAA mills in Itumbiara, Goiás and Ituiutaba, Minas Gerais.

• The mills will be able to supply both Brazilian and international markets with ethanol.

• The agricultural land used for sugarcane cultivation related to all BP's operations in Brazil is within the areas permitted under Brazil's proposed Agro-Ecological Zoning of Sugarcane (Zoneamento Agroecológico da Cana-de-açúcar).

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