BP wraps up USD-4.1bn Archaea acquisition

British oil and gas major BP Plc (LON:BP) on Wednesday completed its acquisition of US renewable natural gas (RNG) producer Archaea Energy Inc (NYSE:LFG), which will now be delisted from the New York Stock Exchange (NYSE).

BP agreed to buy Archaea in October for USD 3.3 billion in cash plus USD 800 million of net debt to boost its bioenergy business. The deal was subject to regulatory and Archaea shareholder approvals which have been secured.

BP says the purchase makes it better able to support customers’ decarbonisation targets and advances its aim to reduce the carbon intensity of its energy products. Bioenergy is among BP’s five strategic transition growth engines that the company seeks to grow rapidly in the current decade.

Houston-based Archaea operates 50 RNG and landfill gas-to-energy facilities across the US. For the first nine months of 2022, it reported revenue of USD 239.1 million and net loss of USD 24.8 million.

(USD 1 = EUR 0.941)

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