By Luciana Magalhaes and Leticia Fucuchima
SAO PAULO (Reuters) -J&F Investimentos SA, the holding company owned by Brazil’s billionaire Batista brothers, is in talks to acquire French utility EDF’s Rio de Janeiro thermal plant, according to two people familiar with the matter.
The deal, which could fetch up to 2 billion reais ($374 million) according to one of the sources, has drawn interest from other bidders, they added. One of the sources noted that the asset sale, coordinated by Bank of America, is still in its early stages and J&F has not yet made a binding offer.
The negotiations are part of a wave of dealmaking in Brazil’s power sector this year, which could soon include big deals from players including Canada’s Brookfield and France’s Engie, people familiar with the matter said.
Asked about talks to sell its Norte Fluminense plant, EDF said it is weighing IPOs of its North American and Brazilian subsidiaries as part of a 10-year global plan to grow its portfolio and long-term investment capacity.
J&F and Bank of America declined to comment.
FRENCH UTILITY REFOCUSES ON DOMESTIC NUCLEAR
As part of a strategic overhaul, EDF is weighing options for its Brazilian assets while reducing its overseas presence and divesting non-core assets to refocus on domestic nuclear projects.
The natural gas-fired plant is operating without long-term contracts from buyers, making it attractive to J&F, which often seeks underperforming assets for turnaround, a source said. J&F’s power company Ambar Energia has other plants without long-term contracts in its portfolio.
J&F, which also owns meatpacker JBS, has expanded its reach in the energy sector through its subsidiary Ambar Energia.
The holding company separately made an offer this week to buy Roraima Energia, a power distribution company in the northern Brazilian state owned by the Oliveira Energia group.
Last year, J&F signed a preliminary agreement with Oliveira Energia to take control of the power distribution company in Amazonas, but the deal has yet to be finalized.
POWER SECTOR DRIVES BRAZIL DEALMAKING SURGE
Energy and natural resources are leading the country’s M&A activity this year, with transactions totaling $22.3 billion, or 53% of all deals in the country up until September, according to financial advisory firm Seneca Evercore.
Four of Brazil’s 10 largest deals in 2025 were in energy and three others in natural resources, driven by buyers seeking resilient sectors with steady cash flows, said Seneca Evercore’s founding partner Daniel Wainstein.
Among major deals on the horizon is Brookfield’s potential sale of the Mantiqueira high-voltage power line in the state of Minas Gerais.
The transaction, led by Brazilian investment banks Itau BBA and Bradesco BBI, could bring around 5 billion reais, with bidding already underway and a sale agreement expected late this year or early in 2026, according to two people familiar with the negotiations.
The deal, first reported in Brazilian newspaper Valor Economico, has attracted interest from China’s State Grid, Colombia’s Grupo Energia Bogota and a consortium of Brazil’s Taesa and Cemig, sources said.
Brookfield, Cemig, Itau and Bradesco declined to comment. State Grid, GEB and Taesa did not reply to requests for comment.
ENGIE EXPLORES TRANSMISSION ASSET PARTNERSHIP
Engie’s Brazilian subsidiary is also weighing the sale of a minority stake in its transmission assets, two people familiar with the talks said.
The French energy firm has engaged investment bank Morgan Stanley to analyze a potential partnership for its investments in transmission lines, one of the sources said. Another source said discussions are in early stages, without prospective buyers involved.
In a statement, Engie confirmed it hired a financial adviser to evaluate opportunities in the transmission sector, but has not made any decisions.
Morgan Stanley declined to comment.
(Reporting by Luciana Magalhaes and Leticia FucuchimaEditing by Brad Haynes and Lisa Shumaker)
