Brazil's CPFL snaps up DESA

CPFL-owned wind turbines in Brazil

CPFL-owned wind turbines in Brazil

Brazilian renewables company CPFL Renováveis will increase its generation assets by 18.5% to 2.12GW after it assumes control of DESA, a smaller renewables player, both companies said in statements.

In exchange DESA will hold a 12.63% stake in CPFL Renováveis through FIP Arrow, an equity fund through which the Weege family also controls DESA. Under the agreement, FIP Arrow will have the right to elect a member of the CPFL Renováveis' board.

CPFL Renováveis will also assume DESA's R$200m ($83.5m) debt, the companies said. Conclusion of the agreement will occur after auditing and authorisation from Brazil's electric regulator Aneel.

This is CPFL Renováveis' first acquisition this year. The privately held Brazilian company has been buying smaller renewables companies and assets for the past years as a declared Log in to read complete article.

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