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Brazil: Merger brings consolidation to renewable energy market

By  |  February 17, 2014

Renewable energy firm CPFL Renovaveis announced plans to acquire its local rival Desa, a deal that will consolidate the market and result in CPFL Energia, CPFL Renovaveis’s parent company, as a leader in the sector.

Reports say CPFL will acquire its competitor by creating a holding company and merging both units’ operations. The acquisition also reportedly includes the assumption of more than $80 million of Desa debt.

In return, Desa will hold a 12.63 percent share in CPFL Energias Renovaveis.

The deal remains subject to regulatory clearance by energy watchdog Aneel and antitrust authority CADE. Reports did not specify exact financial details of the deal.

Full Content: Wall Street Journal

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