Energy Deals Newsbreak LATAM | Ed. #33

Hello, renewables seem to have cooled off a bit more in 2024, while upstream is gaining momentum.

As the M&A landscape in Latin America takes on a more polarized shape, major players took advantage of early February to close some mid-sized-sized deals.

Highlights include:

• Hydro Rein Acquires Stake in Brazil's Largest Solar Complex

• Cargill surprises, makes billion-dollar bid and announces purchase of 100% of SJC Bioenergia

• Ecopetrol concluded the acquisition of 45% of Repsol in Block CPO-09

Now, let’s break down the latest deals and market shifts from the past two weeks.

---

Energy Deals Newsbreak LATAM | Ed. #33

4.65MB ∙ PDF file

Download

Download

---

How did the global M&A landscape look in 2024?

After two years of slowdown, M&A closed out 2024 with renewed momentum. PitchBook’s 2024 Annual Global M&A Report, sponsored by Ideals, highlights how increased liquidity and declining global interest rates fueled dealmaking during this period.

📌 Check out the key sectors that drove the strongest growth
📌 Discover how valuations are shaping up and the opportunities they present
📌 Dive into the rising share of private equity in total transaction value

The study also projects an optimistic outlook for 2025, as markets transition to a more “risk-on” stance following one of the most turbulent periods since the global financial crisis.

Curious how these trends might impact your M&A strategies next year? Download the 2024 Annual Global M&A Report now and gain exclusive insights into the sector’s key trends!

---

M&A Renewables

1. Hydro Rein Acquires Stake in Brazil's Largest Solar Complex

2. French EDF buys hydroelectric plant from Neoenergia for BRL 1.43 bn

3. Schulz buys stake in Elera solar park in MG

4. Athon buys 23 solar plants from GreenYellow and targets new acquisitions

5. Weg acquires remaining percentage of V2COM shares

6. Neoenergia signs agreement to sell Baixo Iguaçu hydroelectric plant

7. Cargill surprises, makes billion-dollar bid and announces purchase of 100% of SJC Bioenergia

M&A Energy

1. Perfin buys 50% of VirtuGNL for USDm 77

2. Brava sells 11 fields in the Potiguar Basin to Azevedo & Travassos and PVE

3. Ecopetrol concluded the acquisition of 45% of Repsol in Block CPO-09

Investment & Financing Renewables

1. Kroma invests BRLm 800 in new solar park in Ceará

2. Climate Fund Managers will build two renewable energy projects in Colombia

3. CFE announced that it will invest at least close to USD 28.94 bn for 51 projects with a capacity of 29,074 MW

4. The Mexican Government presents an electricity plan in which it assures there will be 4.673 MW of photovoltaics

Investment & Financing Energy

1. Energisa will invest BRL 6.2 bn in gas distribution and entry into biomethane and biofertilizers

Announced/Not Confirmed

1. Enel promises to invest BRL 6.1 bn to improve distribution services in Rio

2. YPF seeks partners for gas: the tough negotiation to obtain USD 9 bn

3. Global investors show interest in mining and renewable energies in Peru

4. Colombia: offshore wind projects in the Government's sights, but details must still be finalized

International

1. Chile's agreement with the European Union to develop lithium and copper value chains is in force

2. Aggreko invests in hybrid solutions to drive energy transition in Latin America

3. Brazil and Japan study financing of energy transition and green economy projects

4. On a visit to India, Petrobras evaluates auction and closes agreement to export oil

Fundraising

1. Helexia raises BRLm 170 in debentures to finance distributed generation

Market whispers

Brazil

1. Rialma Group, owned by the Caiado family, puts PCHs up for sale

2. KPS evaluates purchase of diesel thermal plant from Eletrobras

3. Vale analyzes sale of 70% of Aliança Energia to Global Infrastructure Partners

4. Court terminates Renova Energia's judicial reorganization

5. Aneel confirms transfer of BRLm 600 to Amazonas Energia for easing efficiency criteria

6. ANP approves pre-salt auction notice with 14 blocks

7. Aneel will seek agreement for the transfer of Amazonas Energia

LATAM

1. Citi keeps Ecopetrol at high risk for possible sale of fracking business

2. Chilean electricity company CGE fined for exceeding deadlines for installing renewable projects

3. President of the GEB said that Ecopetrol has increased gas prices and should be investigated

4. Strong call for attention from the energy sector to the Colombian Government for investigations

5. They deny alleged forced intervention to Vanti and other companies in the gas sector in Colombia

---

Upstream sector activity surges amid renewables slowdown

The transition to renewable energy in Latin America is progressing along asymmetrical paths. In 2024, while nations with low oil dependence (such as Chile, Costa Rica, and Uruguay) achieved significant advancements in renewable energy adoption, even reaching predominantly renewable electricity generation levels, other fossil fuel-rich countries have seen their transition efforts slow down.

This polarization appears to have global roots. In recent weeks, oil companies have been revising their renewable energy strategies. Equinor, for instance, reduced its clean energy project targets for 2030 and abandoned its commitment to invest half of its capital in low-carbon initiatives. This decision, along with Shell’s suspension of new offshore wind projects, stems from supply chain challenges, inflationary pressures, and less ambitious environmental policies, such as those in the U.S.

Now, 2024 data reinforces the slowdown in LATAMs M&A activity within the sector over the past year—an issue that is not exclusive to the region. Globally, lower anticipated returns, high interest rates, and other factors, such as low energy prices, have hindered the sector’s development across multiple jurisdictions. Europe appears to be an exception, with increasing deal flow and availability of opportunities, driven by the EU’s increasingly favorable regulations.

In Latin America, the growth trend that peaked in 2022 has reversed in 2023-2024. By 2025, renewable energy adoption in Latin America and the Caribbean is expected to grow 3 to 5 percentage points less than originally projected. The decline is attributed to global uncertainties, regulatory shifts, and grid instability in countries like Ecuador and Guatemala.

Meanwhile, upstream activity in the region reached USD 8.3bn by Q324, marking a significant 48% increase compared to the total for 2023 (excluding Chevron’s USD 42.6bn acquisition of Hess). This surge was driven by the aggressive expansion of E&P companies, which accounted for 52% of total transaction volume this year.

February started with major deals in the sector:

• Ecopetrol completed the acquisition of Repsol’s 45% stake in the CPO-09 block for USDm 452, becoming the sole owner of this strategic asset in the Piedemonte Llanero region. The transaction was approved by Colombia’s Superintendence of Industry and Commerce and included an amendment to the exploration and production contract with the National Hydrocarbons Agency.

• Brava Energia sold 11 onshore fields in the Potiguar Basin to Azevedo & Travassos Petróleo and Petro-Victory Energy (PVE) for USDm 15. The deal includes an initial payment of USD 600,000, with the remaining balance due over eight years, pending approval from Brazil’s National Petroleum Agency (ANP).

• Perfin Infra acquired 50% of VirtuGNL for BRLm 450 through a convertible debenture, with an initial investment of BRLm 100 and the remainder tied to performance targets. The funding will support the expansion of LNG truck fleets and the development of decarbonization.

Renewable energy investment: a matter of leadership and strategic interest

This does not mean the region lacks potential for renewables—rather, executive leadership and strategic interest will play a crucial role in shaping the transition. The latest CEO Outlook by PwC positioned Latin America as a key hub for renewable energy investment, with its abundant solar and wind resources attracting global capital. Growing interest in lithium and other critical minerals is also expected to drive M&A activity in the mining sector, particularly in Chile and Peru.

In Colombia, renewable energy capacity is set to grow by 35% in 2025, with 19 new projects adding 2,550 MW to the grid, according to SER Colombia. This expansion will contribute 12% of the country’s electricity generation, with investments totaling COP 3.7 trillion and the creation of 6,000 jobs. The Cundinamarca and Tolima regions are leading this growth.

Renewables also starred billion-dollar transactions in february:

• Cargill exercised its right of first refusal and acquired the remaining 50% stake in SJC Bioenergia, becoming its sole owner. The BRL 2.6bn deal includes debt assumption and is subject to CADE’s approval. The acquisition reinforces Cargill’s renewable energy strategy amid the rising valuation of Brazil’s sugar-energy sector.

• Hydro Rein acquired a 20% stake in the Vista Alegre solar complex in Minas Gerais, with a 902 MWp capacity and an annual generation of 2 TWh. Atlas Renewable Energy remains the majority shareholder. The transaction includes a 21-year power purchase agreement with Albras.

While uncertainties persist, the region remains strategically positioned for renewable energy investment—if the right financial and regulatory conditions align.

This newsletter is brought to you by Ideals. Get in touch to share a deal or market rumors: pelayo.mateache@idealscorp.com

---

Here are some quick updates to keep you in the know:

General Landscape

Brazil

1. The Brazilian wind sector seeks stability to attract long-term investment

2. Speed ​​in regulatory adaptation will be essential for Brazil to take advantage of its renewable potential

3. Safra sees the risk of Eneva “losing steam” in the short term

4. Fuel for the Future boosts investments of BRL 7 bn in crushing plants

5. Raízen: Geovane Consul, ex-BP, takes over as VP of ethanol, sugar and bioenergy

6. Storage will allow further expansion of renewable energies in Brazil, says Aneel director

7. Brazil is going through a crucial moment to define the direction of the energy matrix, says CEO of Isa Energia

8. RZK inaugurates 6.3 MWp solar plant and plans six more in Piauí

9. Solar and wind capacity grows by 20%, but progress slower in rich countries

10. Quantum Engenharia wins Joinville public lighting auction

11. Mergers and acquisitions in electricity totaled 72 operations in 2024

12. Record-breaking heatwave raises energy consumption in Brazil: opportunities for distributed generation

13. Shared Solar Energy: Companies that are revolutionizing the brazilian market with innovative subscriptions

14. Brazil's photovoltaic market faces challenges, but opens up space for innovative solutions

15. Intersolar Summit Northeast highlights the region's strategic role in the electricity sector

16. Sources claim that NBR 17193 was published without the consensus of the standard's committee

17. ANEEL intends to regulate energy storage by May

18. Brazil intensifies electricity exports to Argentina and Uruguay

19. Number of mergers and acquisitions in the electricity sector is the highest in 20 years

20. EPE presents studies on the energy transition scenario in Brazil

21. Brazil is one of the four countries with the most potential in green industry, says report

22. We want to generate energy on a large scale with floating solar, says Itaipu director

23. Azul creates business unit to sell carbon credits to companies

24. Eletrobras and Antaq sign partnership to decarbonize port operations

25. Chamber and Senate move forward to take care of electricity sector projects

26. Ceará Government signs contract with EDP in migration to the free market

27. Aneel extends deadline for government to resolve deficit in Itaipu account

28. Hydrogen thermoelectric plants and the reliability of the electrical system

29. Eneva plans expansion of gas liquefaction plant in the Parnaíba Complex

30. Fachin suspends process over Subida da Serra gas pipeline for another 30 days

31. Total hydroelectric plants authorized to participate in power auction exceeds 5 GW

32. Petrobras launches fund to finance bioeconomy projects

33. Equinor reduces investments in renewables and intensifies oil and gas production

34. Tax reform will require review of contracts and training of teams in the energy sector

35. Oil companies and energy companies signal retreat in renewable targets

36. Commission debates creation of the Low Carbon Hydrogen Development Program

37. Eletronuclear announces cost cutting package on the eve of discussion on Angra 3

38. Petrobras sells biodiesel bunker in Singapore for the first time

39. After being acquired by Vibra, Comerc wants to expand its reach in the free energy market

40. BNDES and RS government sign agreement for climate resilience plan

41. Brazilian oil production falls 2.17% in January 2025

42. Reserve auction enables expansion of thermoelectric plants

43. E30 can reduce Brazil's dependence on imported gasoline, assesses MME

44. Abeeólica: priorities for 2025 include the end of subsidies and revocation of benefits for thermal plants

45. Advancement of the energy transition faces regulatory challenges

46. Brazil emerges as a destination for green investments, after a shift in the USA

LATAM

1. Peru will award four electrical projects for EURm 162.7 in February

2. The Government of Peru affirms that nuclear energy is a great opportunity for the energy transition

3. Renewable energies in Colombia will grow by 35% in 2025

4. Chile installs 2,141 MW of photovoltaic capacity in 2024

5. Distributed generation in Argentina increases by 92% in 2024, and reaches 58.9 MW

6. Chile's renewables share rises to 47% in Dec

7. Vaca Muerta started the first month of 2025 with a new record

8. Electric energy production in Peru grew 3% in 2024

9. Genneia advances with the mining line to supply lithium with renewable energy in Salta

10. 2% of energy generation in the region is nuclear, according to Olade

11. Petroecuador plans to receive USDm 128 from Petrochina for the sale of crude oil

12. The Government of Argentina is advancing in the deregulation of the electrical system: How does it affect renewables?

13. Argentina ended 2024 with more than 900 MW of new installed renewable capacity

14. 85% of the renewable capacity declared under construction in Chile is photovoltaic

15. In 2024, Argentina added 307 MW of photovoltaic capacity

16. The new brake on the adoption of renewable energies in Latin America and the Caribbean

17. Colombia added 1.,625 MW of new capacity in 2024, between centralized and distributed photovoltaic capacity in 2024

18. 350renewables identifies more opportunities in demand management and growth of private PPAs in Chile

19. The way is opening to expand energy storage in Peru

20. ENGIE Chile is awarded the tender for the construction of a new substation in the Metropolitan region

21. Colombia's energy sector requires timely and efficient decisions

22. Brazil and Uruguay sign agreement to expand electricity exchange

Mexico

1. The capacity of distributed generation in Mexico grew by more than 35% in 2024, and reaches 4,447.92 MW

---

Discover our other publications

If you want to stay updated on global M&A/PE news, you can also subscribe to the M&A Community Latam, M&A Community Brasil, M&A Teaser Italy, and M&A Teaser Iberia, in addition to our Energy Deals Newsbreak Iberia with the most relevant information on the energy sector in Iberia.