July 6 (Reuters) – Brazilian power firm Equatorial and Spain’s Iberdrola are in talks with Enel to buy assets of the Italian firm in Brazil, Brazilian newspaper Valor Economico reported on Monday, citing sources.
- Enel is in a spat over its power concession in Sao Paulo, with authorities considering revoking the approval due to a series of outages in recent years during heavy rains.
- Equatorial and Iberdrola want Brazilian authorities to condition the concession renewal on a sale, and believe an agreement with Enel could boost the chances of such an outcome, Valor said.
- Both companies have sent representatives to Rome to discuss the matter, according to the report.
- The two companies also do not rule out buying all Enel assets in Brazil, Valor added.
- Enel said it wants to renew the Sao Paulo concession and “denied speculation regarding negotiations involving a change of control” of the unit.
- Neoenergia, Iberdrola’s Brazilian unit, said it does not comment on market rumors.
- Equatorial said it is “always attentive to opportunities” in its business areas “but does not comment on specific business or acquisition possibilities.”
Brazil Energy Insight 
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