Brazil's largest producer of iron ore and steel, Gerdau, has submitted a binding offer and entered into a share purchase agreement with the Brazilian electric power company Companhia Paranaense de Energia (COPEL) to acquire COPEL's entire stake in the Dona Francisco Energética S.hydroelectric plant (DFESA), which corresponds to 23.03% of its share capital.
The acquisition is consistent with Gerdau's capital allocation plan, increasing cost competitiveness across all of its divisions and increasing self-generation to more than 50 percent of energy consumption with a focus on renewable energy and in line with its decarbonization strategy, the company said.
Gerdau already owns 53.94 percent of DFESA, which accounts for 35.6 megawatts (MW) of its generated energy. As a result of the acquisition, Gerdau will own an average of 65.94 MW of guaranteed energy from DFESA.
The transaction implies an enterprise value equivalent to $ 30 million and is subject to the satisfaction of the usual conditions, precedents for transactions of this kind, including the approval of the Brazilian antitrust authority CADE.
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