The Brazilian Administrative Council for Economic Defense (CADE) has approved without limitation Enel's voluntary takeover offer for the acquisition of the Brazilian power distributor Eletropaulo Metropolitana Eletricidade de São Paulo (Eletropaulo) for a total consideration of BRL5.4bn (US$1.56bn), i.e. BRL32.2 (US$9.26) per share.
The Spanish utility Iberdrola also committed to acquire the rest of Eletropaulo's shares at a total cost of BRL5.7bn (US$1.7bn), i.e. BRL 32.1 per share. Enel then offered BRL4.7bn (US$1.38bn) for the entire capital of Eletropaulo and Brazilian utility Energisa also bid for Eletropaulo.
Eletropaulo is based in São Paulo and currently serves more than 18 million customers across 24 municipalities. It is currently owned by Energisa, an electric services company based in Rio de Janeiro. Iberdrola is already active in Latin America, while Enel is seeking to invest in this fast-growing region.