UPDATE 1-BP may buy out partner Bunge in Brazilian joint venture BP Bunge Bioenergia -source
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By Tatiana Bautzer and Gabriel Araujo
SAO PAULO, Feb 1 (Reuters) - BP Plc may buy out its partner Bunge Ltd in Brazilian sugar and ethanol joint venture BP Bunge Bioenergia, one source with knowledge of the matter said.
BP may decide to acquire the stake owned by Bunge after UAE state investor Mubadala Capital LLC dropped out of the process to buy the company, the source added, asking for anonymity as the talks are private.
Mubadala dropped out after concluding talks to acquire another Brazilian ethanol company, Atvos, and Brazilian energy company Raizen SA was left as the only bidder.
BP has the right of first refusal and may buy out Bunge if it considers Raizen's bid too low, the source said.
Mubadala, BP and Raizen did not immediately comment on the matter.
Brazilian newspaper Valor Economico reported on Wednesday that shareholders had given up on a sale to a third party and that BP was considering buying out its partner. (Reporting by Tatiana Bautzer; additional reporting by Gabriel Araujo; editing by Jason Neely, Kirsten Donovan)