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BP and Bunge to sell Brazil sugar and ethanol venture

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Oil giant British Petroleum and US commodities trader Bunge have put their Brazilian sugar and ethanol joint venture BP Bunge Bioenergia up for sale, according to newspaper Valor Economico.

It said investment firm Mubadala, based in Abu Dhabi, and Brazilian energy company Raizen (a joint venture between oil giant Shell and bioethanol producer Cosan), were interested in buying the company, citing sources familiar with the matter.

Valor Economico further said JPMorgan will advise BP Bunge on the deal, and that the company's assets were valued at between nine billion and 10 billion reais ($1.96 billion).

Bunge sent a statement to Reuters, affirming it was assessing options to exit its involvement in the sugar and bioenergy joint venture, as previously disclosed by the company.

"While we are pleased with how the business is performing, it is not core to our overall business strategy," Bunge said.