A PYMNTS Company

Brazil: Utility CPFL Energia buys AES Corp unit for $486 mln

By  |  June 16, 2016

CPFL Energia, the largest private Brazilian utility, has agreed to buy a power distributor owned by AES Corp in southern Brazil for 1.7 billion reais ($486 million), the companies announced on Thursday in securities filings.

The acquisition of Porto Alegre-based AES Sul, which has around 1.3 million clients and 5.5 billion reais in annual revenue, will raise CPFL’s distribution market share by just over one percentage point to 14.3 percent.

“The agreement to buy AES Sul strengthens our strategy to grow in distribution”, CPFL Chief Executive Officer Wilson Ferreira Junior said in a statement.

CPFL, based in Campinas, has acquired three other distribution firms in the past decade.

The deal, which must be approved by Brazil’s electricity regulator and antitrust authority, would mark the first strategic acquisition in the country’s electricity sector for two years.

Full Content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.