Cross-border team advises Equatorial Energia in purchase of Echoenergia Participações

Norton Rose Fulbright's São Paulo and London offices represented Brazilian energy company Equatorial Energia SA in a successful bid to purchase the entire issued share capital of one of the largest renewable energy companies in Brazil, Echoenergia Participações SA, from Ipiranga Fundo de Investimento Em Participações Multiestratégia, a fund owned by Actis LLP.

The transaction, which is the largest ever renewable energy M&A deal in Brazil, is part of the growth strategy of Equatorial Energia SA and will allow the expansion of its operating capacity while contributing to its consolidation in the Brazilian electricity sector.

Positioned in the Northeast region of the country, Echoenergia has 1.2GW of installed wind energy capacity (in operation and advanced construction) in addition to a portfolio of ready-to-build projects which total 1.1GW of capacity (10 percent wind and 90 percent solar), with the potential to become the largest renewable generator in Brazil.

The value of the transaction is approximately BRL 6.6 billion (US$1.2 billion), subject to applicable price adjustments in accordance with the terms of the deal. The completion of the transaction is subject to certain conditions as well as approval by the shareholders of Equatorial Energia SA.

Norton Rose Fulbright advised on English law aspects of the transaction alongside the Brazilian legal counsel Cescon, Barrieu, Flesch & Barreto Advogados. The Norton Rose Fulbright team was led by partners Silvia Fazio (São Paulo) and Jon Perry, and included Nonna Crane, Matt Foster, Jess Ong and Gerald Tan (London).