By Brazil Stock Guide – Portugal’s Energias de Portugal SA, known as EDP, is integrating its Brazilian operations under EDP Brasil in a transaction valued at R$4.1 billion, as the group seeks to sharpen its position in the country’s free energy market.
The information was reported by Valor Econômico. The deal involves EDP Brasil acquiring assets from EDP Renováveis Brasil, which had been controlled by EDP Renewables, another subsidiary of the Portuguese power group.
EDP Renováveis Brasil has 1.8 gigawatts of installed capacity in Brazil, including 1.1 GW of onshore wind assets and 0.7 GW of solar capacity. The transaction brings those renewable power assets under EDP Brasil’s structure.
EDP SA is listed in Lisbon under the ticker EDP. EDP Renováveis SA trades under the ticker EDPR. The Valor report did not cite a publicly traded ticker for EDP Brasil.
According to the company statement cited in the report, EDP Renewables is using the transaction to reinforce its focus on markets with growth potential in wind, solar and energy storage.
The agreement also leaves open the possibility that EDP Renewables may return to Brazil through future partnerships with EDP Brasil.
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