BP Share News (BP.)

BP has moved to take full control of its Brazilian biofuels mills, buying the remaining half of ethanol mill owner Tropical BioEnergia and a 3% stake in sugar and ethanol producer Companhia Nacional de Açúcar e Álcool (CNAA).The oil giant is paying $71m for the remaining stake in Tropical BioEnergia, which is currently owned by Maeda Agroindustrial and LDC Bioenergia. BP plans to double the capacity of Tropical BioEnergia, which owns a mill in Edéia, Goiás state, to 5m tonnes of crushed cane or 450m litres of ethanol equipment a year.The acquisition takes its Brazilian ethanol portfolio to three mills."We have a major growth agenda for our biofuels business in Brazil," chief executive of BP Biofuels in Brazil said. "This transaction, together with other recent acquisitions, gives us a strong platform from which to expand our capacity to supply both domestic and international fuels markets."BP is paying $25m for the 3% stake in CNNA. Following the acquisition in April 2011 of 83% of the shares of CNAA and subsequent conversion of CNAA's long-term debt to equity, BP will own 99.97% of the shares of the company. The stake is also being bought from LDC Bioenergia. CNNA has mills in Itumbiara, Goiás and Ituiutaba, Minas Gerais."This is another step for our biofuels business in Brazil", Lindenhayn. "We have been operating these mills since April and the teams are working hard to integrate systems and processes to become part of BP."