Brazil's Eneva abandons ambitions for merger with AES Tiete

Brazilian energy company Eneva SA (B3:ENEV3) has decided for now to not make any new takeover bids for peer AES Tiete Energia SA (B3:TIET11), according to CEO Pedro Zinner.

The company is focusing on executing its strategic plan and does not intend to present a new proposal for AES Tiete at this point, Zinner said at a conference call held on Monday.

On March 1, Eneva made a binding proposal offering approximately BRL 6.6 billion (USD 1.1bn/EUR 1bn) to AES Tiete's shareholders, of which BRL 2.75 billion was in cash and the rest in shares. Eventually, AES Tiete turned down the offer as it determined that the terms and conditions were not in the best interest of the firm and its shareholders, mainly due to the incompatibility of the two businesses. This led to the end of negotiations last month.

As it considers its business dealings with AES Tiete over, Eneva is now evaluating other opportunities amid the current scenario, the company's financial director, Marcelo Habibe, added.

(BRL 1 = USD 0.174/EUR 0.160)

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