Brazilian mining company Vale agreed to pay BRL2.7 billlion ($539.7 million) to boost its stake in local power generation company Aliança Geração to 100%.
Vale said it acquired an additional 45% of Aliança from Minas Gerais state-owned utility Cemig Geração e Transmissão, it said in a securities filling on Thursday.
The deal makes Vale the sole owner of seven hydro-power plants in the state of Minas Gerais and three windfarms in the northeast of Brazil, with a combined installed capacity of 1.4GW, the mining company said.
It called the transaction a strategic move towards the use of renewable energy in Brazil.
Minas Gerais has launched a disinvestment plan, including some of Cemig’s assets, in a bid to reduce the state’s debt.
