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Bloomberg
Italian power giant Enel SpA won a highly contested multibillion-dollar battle for AES Corp.’s Brazilian utility in a move that will more than double its presence in the country’s electricity distribution market.
Enel’s 45.22 reais-a-share ($12.14) offer for Eletropaulo SA topped a final one by leading rival Iberdrola SA of Spain in sealed bids opened on the Sao Paulo stock exchange. Enel already has three distribution companies in Rio de Janeiro, Ceara and Goias states, delivering power to millions of clients. The offer values the company at $2.03 billion based on 167.3 million shares outstanding.
The bidding war turned Eletro-paulo, which serves one the largest consumer markets in Brazil, into one of the most sought-after electric utilities in Latin America. The months-long saga began with an April 5 offer from local company Energisa SA and ended after more than a half-dozen counteroffers were made, setting the stage for a heated, final battle between Enel and Iberdrola.
AES and Enel weren’t immediately available for comment. Iberdrola’s Neoenergia unit said in a statement that it would continue to track opportunities for expansion in Brazil. The company’s rivalry with Enel over Eletropaulo escalated into a political war both in Latin America and at home in Europe. At one point, Enel released a letter to Brazilian newspapers, complaining about a deal that would give preference to Iberdrola in a share offering that was later cancelled by Eletropaulo.