Spanish utility group Iberdrola is to buy Brazilian utility Elektro Eletricidade e Servicos SA for $2.4bn in cash in a regulatory announcement.
Elektro distributes electricity to 2.17m clients, principally in Sao Paulo. Brazil represents a key area of international expansion for Iberdrola: the Spanish firm already holds a 39 per cent stake in Neoenergia and as a result of the deal will become one of the biggest electricity companies in Brazil.
The deal is awaiting approval from Brazilian regulator ANEEL.
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