Engie Brasil Energia SA has inked an agreement to purchase solar power plants in Brazil with an overall installed capacity of 545 MW from Atlas Renewable Energy. Reportedly, Engie will acquire Atlas Energia Renovavel do Brasil SA and Atlas Brasil Energia Holding 2 SA for about €618 million. The two targets possess five photovoltaic (PV) plants in the states of Bahia, Ceara, and Minas Gerais.

Earn-out provisions are also included in the agreement, subject to fulfilment of specific requirements. In addition to other standard requirements, the acquisition is contingent upon the approval of the Brazilian antitrust regulator, CADE. The acquisition is projected to boost the company’s earnings before interest, tax, depreciation, and amortisation margins in the long run.

In April 2023, Atlas Renewable Energy, reached a 21-year power purchase agreement with Brazilian aluminium producer Albras to supply solar power. Atlas had to supply the energy from the 902 MWp Vista Alegre photovoltaic project in the state of Minas Gerais in Brazil.

REGlobal’s Views: Atlas can use the funds from the sale to develop more new renewable energy projects in Brazil. The company is quickly planning to expand its renewable energy capacity in the country and grow its market share. Previously, owned by Actis, Atlas was bought by GIP in 2022.