Auren, AES Brasil Merger: Creating 8.8-GW Renewables Giant

May 16, 2024 01:40 PM ET
  • Merger between Auren Energia and AES Brasil creates 8.8 GW renewable energy platform. AES Corp to sell stake for $640 million, simplifying portfolio for US market focus.

Brazilian energy group Auren Energia SA has agreed to merge with AES Brasil Energia SA, creating a platform with 8.8 GW of renewable energy assets. The AES Corporation will sell its 47.3% equity interest in AES Brasil to Auren for about USD 640 million. Auren plans to absorb AES Brasil and make it a wholly-owned subsidiary, offering shareholders three options for payment.

The sale of AES' stake in the Brazilian business is expected to be finalized within four-to-six months. AES President and CEO Andres Gluski stated that the transaction will simplify the company's portfolio and focus on supplying renewable energy to corporate customers in the US market. AES Brasil has a 5.2-GW portfolio of renewable energy assets, while Auren owns 3.2 GW of operational wind, solar, and hydropower plants.

What impact will the merger of Auren Energia and AES Brasil have on renewable energy?

  • The merger will create a renewable energy platform with a total of 8.8 GW of assets, making it one of the largest players in the Brazilian market.
  • Auren Energia will become the sole owner of AES Brasil Energia, consolidating its position in the renewable energy sector in Brazil.
  • The transaction will allow AES Corporation to streamline its portfolio and focus on supplying renewable energy to corporate customers in the US market.
  • The merger will bring together a diverse portfolio of renewable energy assets, including wind, solar, and hydropower plants, contributing to a more sustainable energy mix in Brazil.
  • The sale of AES' stake in AES Brasil to Auren for USD 640 million demonstrates the growing interest and investment in the renewable energy sector in Brazil.

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