The acquisition, which will be paid for in cash, will see Iberdrola become one of the largest electricity companies in Brazil. The company already holds a 39% stake in electricity firm Neoenergia, which operates a number of hydro schemes in the country.

Elektro is one of the major electricity providers in Brazil, in the states Sao Paulo, where it is the third largest distributor, and Mato Grosso. It has 2.17 million customers supplying more than 11,000GWh in 2009 through a network of 105,792km.