Souto Correa Advogados has helped Brazilian steelmaker Gerdau buy two hydroelectric power plants in the state of Mato Grosso from local company Atiaia Energia for 440 million reais (US$75 million), which it will use to self-supply its own renewable power.
Pinheiro Neto Advogados advised the target companies and the seller for the deal, which was signed on 21 January. The transaction requires clearance from the Brazilian antitrust authority CADE and the local electricity regulator ANEEL before it can close.
The acquisition hands Gerdau two companies, Rio do Sangue Energia and Paranatinga Energia, which control the Garganta da Jararaca and Paranatinga II plants. Both have a peak installed capacity of 29 megawatts.
Due diligence for the deal required particular attention due to the plants’ proximity to protected Indigenous areas.
The acquisition is part of Gerdau's strategy to use more cost-effective renewable energy sources within its own power supply, enabling the company to reduce its operational expenses and become more competitive in the market.
Self-production investments are common in Brazil. In November, for example, CCR launched a power self-production project in partnership with local energy company Neoenergia to provide 60% of the construction company’s total energy supply.
Gerdau is a leading global steel producer based in Brazil and the largest producer of long steel in Latin. It operates in the construction, automotive and industrial sectors, among others.
Atiaia is a renewable energy company controlled by Brazilian industrial group Cornélio Brennand. It focuses on the construction and operation of power generation plants from renewable sources, including small-scale hydroelectric plants.
Counsel to Gerdau
Souto Correa Advogados
Partners Isabelle Bueno and Rodrigo Tellechea, and associates Amanda Baldacone and Natália Rudiger
https://latinlawyer.com/article/gerdau-invests-in-energy-self-production-hydroelectric-buy