Brazil's Administrative Council for Economic Defense (CADE) has approved today, without restrictions, the sale of a 605-MW wind project of Renova Energia SA (BVMF:RNEW11) to a unit of France’s Engie SA (EPA:ENGI).
Under the deal, Engie Brasil Energia SA will pay BRL 15 million (USD 4.7m/EUR 4m) for the project-related rights, obligations and other covenants. According to previous press releases, the transaction includes the rights to the 355.5-MW Umburanas I Project, the 108.9-MW Umburanas II and the remaining wind potential in the region. The Umburanas II project was scheduled for completion by January 2019.
Renova said before that the sale of this project would reduce its capital expenditure (Capex) requirements for the next 18 months.
Overall, CADE has concluded that the transaction is not worrisome, nor it shall give rise to competitive concerns.