E.On says that its €350 million deal with MPX will enable it to quickly gain a significant position in the Brazilian and Chilean power markets.
The German energy giant and Rio de Janeiro-based MPX are to create a joint venture company that will develop power generation projects in Brazil and Chile, as well as undertake energy trading and supply activities.
The investment is E.On’s first in Brazil and is a key step in the company’s strategy to build its business in fast-growing non-European markets.
“The strategic partnership, combining MPX’s local expertise and access to natural resources with E.On’s global scale and capabilities, will enable us to create significant value in thermal and renewable power generation in Brazil,” said Johannes Teyssen, CEO of E.On AG. “We will join knowledge, experience and the commitment of our two companies for the benefit not only of MPX and E.On but also for the Brazilian economy and for power consumers in the country.”
The 50-50 joint venture will initially own a portion of a pipeline of 11 000 MW of MPX’s projects, including the 5400 MW Acu project in Rio de Janeiro and the 2100 MW Castilla power project in Chile. Overall, the partners are aiming to develop 20 000 MW of new capacity in the region.
“The already existing 11 000 MW development pipeline will form a platform to quickly achieve a significant market position in one of the world’s fastest growing power markets,” commented Teyssen.
MPX said that the partnership would enable it to accelerate the monetisation of projects that are already licensed. “Through this JV, MPX will be able to leverage E.On’s global platform, expertise in cross-technology project development, senior management experience and extensive capabilities in generation,” said Eike Batista, Chairman of the MPX board.
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