Repsol to buy 40% stake in Bunge's biofuels plants in Spain

Spanish oil-and-gas major Repsol SA (BME:REP) has signed an agreement to acquire a 40% stake in three oils and biofuels plants in Spain to boost the supply of low-carbon feedstock for the production of renewable fuels.

US-headquartered agribusiness and food company Bunge Global SA (NYSE:BG) will sell the stake in the plants in a deal valued at USD 300 million (EUR 276.4m) plus up to USD 40 million in contingent payments, Repsol said on Tuesday.

The three plants, which are owned by Bunge Iberica, are located in Bilbao, Barcelona and Cartagena near Repsol’s refineries. Under the agreement, Bunge will continue to operate the facilities.

The transaction is subject to customary closing conditions, including regulatory approvals.

The acquisition will give Repsol a wider access to sustainable feedstock to produce renewable fuels to facilitate the emissions reduction from transport. The multi-energy group currently produces 1.1 million tonnes of renewable fuels per year, and expects to increase the output to 1.7 million in 2027.

Repsol is also expanding its service station network to add 100% renewable fuel pumps, aiming to reach 600 pumping stations by the end of 2024 from 120-plus it has currently, the company added.

(USD 1.0 = EUR 0.921)

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