M&A Deal Analysis – BP To Acquire Major Interest In Companhia Nacional de Acucar e Alcool (CNAA) In Brazil

Pages: 4 Published: April 15, 2011 Report Code: GDAE0099M&A

  • Overview
  • Contents
  • Tables
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BP p.l.c (BP), has announced its acquisition of a majority stake in Companhia Nacional de Acucar e Alcool (CNAA). The total value of acquisition is approximately $680m and BP has also agreed to refinance 100% of CNAA's existing long term debt. After the acquisition, BP will become the operator of three bioethanol and sugarcane producing plants. Out of which, two are operational and one is currently in construction. It is expected that when CNAA’s assets become fully operational, it will increase BP’s overall Brazilian production capacity to around 1.4 billion liters of ethanol equivalent per year (or nine million barrels), which would be significantly up from the current production capacity of 435 million liters. BP will also have the capacity to export approximately 340GWh of electricity per year to the grid.

Scope

BP has announced its acquisition of 83% stake in the Companhia Nacional de Acucar e Alcool (CNAA) with the purchase consideration of $680m and also agreed to refinance 100% of existing long term debt of CNAA. Under the terms of the agreement, the CNAA will acquire two operating plants in Goias state and one under construction plant in minas Gerais state. The acquisition will make BP one of the major suppliers of bioethanol in the Brazilian market as well as international markets.

Reasons to Buy

This deal analysis will give the detailed information about the acquisition of major interest of CNAA by BP.

Table of Contents

"1 Table of Contents 1

1.1 List of Tables 1

1.2 List of Figures 1

2 Summary 1

3 BP To Acquire Major Interest In Companhia Nacional de Acucar e Alcool (CNAA) In Brazil 1

3.1 Deal Overview 1

3.2 Deal In Brief 1

3.3 Comparable Deals 2

3.4 Features of Companhia Nacional de Acucar e Alcool (CNAA) Acquisition 2

3.5 Key Drivers of the Deal 2

3.5.1 Strategic Acquisitions 2

3.5.2 Increased Demand for Ethanol 3

3.5.3 Production Cost 3

3.6 About the Company 3

3.6.1 BP Alternative Energy 3

3.6.2 Companhia Nacional de Acucar e Alcool (CNAA) 4

4 Appendix 4

4.1 Abbreviations 4

4.2 Methodology 4

4.2.1 Coverage 4

4.2.2 Secondary Research 4

4.2.3 Primary Research 5

4.2.4 Modeling and Forecasting 5

4.3 Contact Us 5

4.4 Disclaimer 5"

List of Tables

Table 1: Comparable Acquisition Deals, 2011 2

Table 2: Bioethanol Installed Capacity, ML, Brazil, 2010–2015 3

Table 3: Bioethanol Plant, BP, Brazil, 2011 4

Table 4: Biomass Plant, BP, Brazil, 2011 4

Table 5: Abbreviations 4

List of Figures

Figure 1: Bioethanol Installed Capacity, ML, Brazil, 2010–2015 3

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