Brazilian steel and iron ore producer CSN was declared winner of an auction for the privatization of CEEE-G, the energy producer and distributor of the country’s southern state of Rio Grande do Sul.
CSN will pay BRL 928 million ($179 million) for a stake equivalent to 66.23 percent of the CEEE-G capital owned by the state. The company will also pay BRL 1.943 billion, along 30 years, for the concession of the power plants owned by CEEE-G. The total power capacity acquired is estimated at 1.27 million megawatts.
In a statement, the company said that the acquisition has the objective of supporting its strategy of business expansion, via the acquisition of renewable energy, in the search of self-sufficiency in energy to strengthen its competitiveness.
As previously reported by SteelOrbis, CSN has entered recently in an agreement to buy the Chapeco energy company, the owner of the Quebra-Queixo hydroelectric powerplant.
USD = BRL 5.17 (August 1)