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November 19 (Renewables Now) - Brazil's Administrative Council for Economic Defense (CADE) approved without restrictions the planned acquisition of a 40.6% stake in Companhia Energetica de Sao Paulo (BVMF:CESP6), or Cesp, by Votorantim Energia and Canada Pension Plan Investment Board (CPPIB).
The transaction is valued at more than BRL 3 billion (USD 801.3mm/EUR 701.9m), according to Reuters.
This operation is a business opportunity that aligns with Votorantim Energia's strategy to continue investing in the generation of renewable energy in Brazil, the company said. For Cesp, it comes as a natural step in regards to Sao Paulo state government State Privatization Plan (PED), CADE added.
The regulatory agency has determined that this transaction does not present risks to the competition due to the low participation of applicants in both the market and upstream market.
Votorantim and CPPIB secured the deal through SF Ninety Two Participacoes Societarias Ltda (SF92) and VTRM Energia Participacoes SA, the former controlled exclusively by Votorantim while the latter is a joint venture between the two firms.
(BRL 1 = USD 0.27/EUR 0.23)