(Bloomberg) BP Plc (BP/) agreed to buy a majority stake in a Brazilian ethanol and sugar producer to expand its operations in emerging markets.

BP will pay about $680 million for 83 percent of Cia. Nacional de Acucar & Alcool and will refinance all of CNAA’s existing long-term debt, the London-based company said in a statement today. When the assets are fully developed, the deal will increase BP’s Brazilian production to 1.4 billion liters of ethanol equivalent a year, or 9 million barrels.

Chief Executive Officer Robert Dudley is moving BP’s operations closer to faster-growing emerging-market countries such as Brazil, Russia, India and China. The expansion of BP’s ethanol business follows rival Royal Dutch Shell Plc (RDSA), which agreed to merge assets with Cosan SA Industria & Comercio to form the world’s largest sugar-cane producer.

“This strategic acquisition underlines BP’s commitment to building material businesses in growing economies and continued expansion in Brazil through exploration and production, as well as biofuels investments,” Dudley said in a statement. “This is the biggest acquisition to date for BP Alternative Energy as we continue to build a leading low carbon fuels business.”

Shell’s sugar and ethanol-producing venture in Brazil, to be named Raizen, will produce 5 billion liters of ethanol within five years, according to CEO Vasco Dias.

BP is still awaiting government approval of its purchase of offshore exploration licenses in Brazil last year from Devon Energy Corp. In the CNAA deal, BP will become the operator of two producing ethanol mills in the Brazilian states of Goias and Minas Gerais. Another CNAA mill is under construction in Minas Gerais, the company said.

Since the start of the year, BP has entered joint ventures in Russia and India for offshore oil and gas exploration. BP sealed a partnership with Cnooc Ltd. last year to explore the South China Sea.