In a strategic movement, electrical companies Auren and AES Brasil announced their merger on Wednesday. This operation will transform AES Brasil into a wholly-owned subsidiary of Auren, resulting in the creation of one of Brazil’s largest renewable energy platforms, boasting an impressive installed capacity of 8.8 Gigawatts (GW).
This diversified portfolio features a balanced distribution of energy generation, with hydropower representing 54% of the capacity, followed by wind power at 36%, and solar power at 10%. This combination positions the resulting entity as the third-largest power generator in the country, with a combined EBITDA of R$ 3.5 billion (2023 data).
Additionally, ongoing projects for 2024 anticipate an increase in installed capacity of approximately 700 MW, which is expected to positively impact the new entity’s cash generation.
The merger will be executed through a complex share incorporation structure, where AES Brasil shareholders can choose among three different conversion modalities of their shares to Auren’s, balancing between receiving new shares and cash amounts according to their strategic and financial preferences.
The transaction is expected to close in the second half of 2024, pending regulatory approvals from the Aneel (National Electric Energy Agency) and CADE (Administrative Council for Economic Defense).
