The Votorantim Group and Canadian pension fund Canada Pension Plan Investment Board (CPPIB), indirect controllers of Cesp, decided to combine their electricity assets creating a company valued at R$17 billion. The new company brings together Cesp, renewable generation company VTRM and energy trader Votener. The merger of operations begins with VTRM, a joint venture between Votorantim and the Canadian company that owns wind and solar assets and will receive an investment of R$1.5 billion. Thus, after the transaction, Votorantim and CPPIB will hold a 54.2% and 45.8% interest in VTRM’s capital, respectively. Cesp is valued at R$7.85 billion on B3 and, if the transaction is approved, the company will request listing on the Novo Mercado. The holding will have an installed capacity of 3.3 gigawatts, almost double the current capacity of Cesp, in addition to an annual net revenue of BRL 5.8 billion.
RETAIL
Pão de Açúcar leaves hypermarkets
Grupo Pão de Açúcar (GPA) sold 71 points under the Extra Hiper banner to Assai and exited the hypermarket operation. The deal was closed for R$5.2 billion. GPA currently has 103 stores in this format. The Extra Hiper brand will be discontinued, and the stores sold will be converted to Assaí cash and carry. The units that were not sold will be converted to the Pão de Açúcar or Mercado Extra banners, formats with greater profitability potential, according to Pão de Açúcar.
FUSION
Americans shoots with business combination
On Monday (18), Lojas Americanas and Americanas announced studies to combine their businesses. The news pleased the market and shares rose 28%. The change aims to “maximize the customer experience in a new value creation journey”. Lojas Americanas is also studying a corporate reorganization aimed at listing its shares in the United States. If the operational combination is successful, the company will be listed on the Novo Mercado, the segment with the highest level of corporate governance at B3.
ENERGY
EDP Brasil wins Celg-T auction
EDP Brasil won the auction held by Celg-T, the energy transmission company owned by Celg in Goiás. EDP defeated competitors with a bid of R$1.977 billion, 80.10% above the minimum price. With this, the company adds to its portfolio 755 kilometers of transmission lines, mostly in Goiás, and 14 substations, which represent an annual allowable revenue (RAP) of R$216.4 million. Today, EDP has 1.9 thousand kilometers of lines and RAP of R$ 648.6 million, considering the 2020-2021 cycle.
MINING
Vale’s results disappoint the market
On Tuesday night (19th), Vale released its previous results and estimates for the third quarter, which were below expectations. Nickel production was 25% lower than expected, copper 1% lower and iron, the main product, 2% lower than estimated. The miner delivered 89.4 million metric tons of ore in the period. Sales were also lower than expected due to the slowdown in steel demand. The news displeased the market. On Wednesday (20) shares fell 3.3%.
HIGHLIGHTS ON THE PREGÃO
Developers project deceleration
The results and previews released by some of the developers indicate a slowdown in the sector in the third quarter. On Wednesday (13), the preview released by Cyrela indicated that net sales fell to R$ 1.366 billion, down 20.2% from the same period in 2020. The number of launches dropped from 15 in the second quarter to 12 on the third. The developer Even disclosed a 42.2% drop in net sales in the operational preview, totaling R$ 277 million. In the same period last year, Even had recorded R$480 million. Miter followed in line with other developers. In the third quarter, even raising launches by 22%, the company suffered a similar drop of 22% in net sales.
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