Tractebel not to acquire biomass energy firm Andrade Energia

May 29, 2013 - Brazilian power company Tractebel Energia (SAO:TBLE3) announced yesterday it gave up its planned acquisition of local ethanol and biomass energy producer Andrade Energia, a deal estimated at BRL 96 million (USD 46.3m/EUR 36m).
The conditions presented did not come in the agreed deadline or form, Tractebel explained.
Tractebel's board had given the green light to the purchase of Andrade Energia at the end of March.
The contract would have transferred the concession of the Vale do Sao Simao thermoelectric biomass co-generation plant, in Minas Gerais state, to Tractebel. The 55-MW plant has been in commercial operation since October 2010.
Earlier this month, Tractebel's president Manoel Zaroni had said his company's debt is expected to increase twofold after acquiring the 3,750-MW hydroelectric project Jirau from its parent, French GDF Suez (EPA:GSZ).
Zaroni expects the transaction, scheduled for 2014, to result in additional debt of over BRL 2.8 billion for Tractebel.
(BRL 1 = USD 0.482/EUR 0.375)

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