Brazilian steelmaker Gerdau has signed an agreement to acquire the remaining shares in Dona Francisca Energética S.A. (DFESA), giving it full ownership of a hydropower business in the southern state of Rio Grande do Sul.
The company announced on June 16 that it had reached an agreement with utility Companhia Paranaense de Energia (Copel) to acquire its 23.03% stake in DFESA. The transaction values the company at 150mn reais (US$27m).
The purchase price will be paid in cash using Gerdau’s own resources and remains subject to customary closing conditions, including approval by Brazil’s antitrust authority. The deal also includes Copel waiving its pre-emptive rights over a separate transaction involving the stake held by utility Celesc.
Gerdau already owns 53.94% of DFESA and in April announced plans to acquire Celesc’s 23.03% holding. Once both transactions are completed, Gerdau will own 100% of DFESA through a combined investment with an enterprise value of 300mn reais.
DFESA owns an 85% stake in the consortium that operates the Dona Francisca hydroelectric plant on the Jacuí River, between the municipalities of Agudo and Nova Palma in Rio Grande do Sul. The plant has installed capacity of 125MW and firm energy capacity of 72.5 averageMW, of which around 66 average MW are allocated to DFESA.
Following the acquisitions, Gerdau said it would increase its self-generated energy capacity by an average of 30.4MW and use all of DFESA’s 65.94 average MW of firm energy for its own operations.
Chief executive Gustavo Werneck said the acquisition would increase the company’s renewable energy generation and support efforts to lower operating costs and reduce emissions.
The deal is the latest in a series of investments by Gerdau in renewable energy assets. The company inaugurated its second solar park in Goiás in March, following the launch of another project in Minas Gerais in 2025. It also acquired two small hydropower plants in Mato Grosso last year.
