en.Wedoany.com Reported - Brazil's Administrative Council for Economic Defense (Cade) has approved Gerdau's acquisition of a 23.03% stake in Dona Francisca Energética (Dfesa) from power company Celesc, based on an enterprise value of 150 million reais. Cade's decision was published in the Federal Official Gazette on Monday (June 29) and is subject to approval by the National Electric Energy Agency (Aneel).

This transaction is the second step in Gerdau's plan to achieve full ownership of Dfesa. In April, Copel signed a stock purchase agreement with Gerdau to sell its 23.03% stake in Dfesa, also based on an enterprise value of 150 million reais. That transaction was completed in April, after which Gerdau held 76.97% of Dfesa's share capital. Upon completion of the Cade-approved acquisition of the remaining 23.03% stake from Celesc, Gerdau will hold 100% of Dfesa's share capital, and Santa Catarina state-owned company Celesc will exit the shareholder structure.

Founded in 1998, Dfesa operates the Dona Francisca hydropower plant with an installed capacity of 125 megawatts, located on the Jacuí River between the municipalities of Agudo and Nova Palma in Rio Grande do Sul. Under Approval Resolution No. 2.932/2021, the plant's concession is valid until September 21, 2037.

Gerdau stated that acquiring shares in Dfesa is part of its strategy to expand the use of renewable energy in its industrial operations through self-consumption. The company plans to use electricity generated by Dfesa for self-consumption to enhance production cost competitiveness and promote long-term sustainable development. Upon completion of the transaction, Gerdau's self-generated electricity will increase by 30.4 megawatts of average power, and the available 65.94 megawatts of average guaranteed power will be fully used for self-generation. Gerdau CEO Gustavo Werneck stated that fully acquiring a hydropower plant in which the company has been a shareholder since the start of its operations aims to increase renewable energy production, aligning with the company's decarbonization process. The company's goal is to raise the proportion of self-generated renewable energy to over 50% of its consumption.

For Celesc, selling the stake represents an opportunity to generate financial returns for shareholders and allocate resources to new investments in the renewable energy generation and trading market. Copel stated that the sale aligns with its strategy of continuously optimizing its portfolio, including simplifying its equity structure and concentrating investments on large assets where it holds control or significant influence, aiming to create more value for shareholders.