Competitive dynamics
In terms of length, in 2017, State controlled Eletrobrás reached approximately 65,000 kilometers of electric power transmission lines with voltage higher than or equal to 230 kV, representing almost half of this type of lines in Brazil[1].
In a 2013 report, it is said that Private companies:~35 out of 45 companies in the transmission systems. o-existence between state-controlled and private companies. There are no limitations on the foreign ownership of electricity companies; however, every company must be incorporated under Brazilian law[2].
Note: Furnas, CHESF, Eletrosul are majorly owned by Eletrobrás[3].
Note: CEMIG is controlled by The State of Minas Gerais[4].
Colombian firms
The second on the list of companies with largest transmission lines, CTEEP, is controlled by ISA, a Colombian state-owned company [5].
More recently, in March 2015, Empresa de Energía de Bogotá (EEB) entered the Brazilian market with the acquisition of a 51 per cent equity share each in four Brazilian power transmission companies. Under the deal, which cost EEB about USD170 billion, the company acquired Transenergía Renovável S.A., Transenergía São Paulo S.A., Goiás Transmissão S.A. and MGE Transmissão S.A. With this, the company acquired 1,094 km of power transmission network established at 500 kV, 345 kV, 230 kV and 138 kV, located in the states of Espírito Santo, Goias, Mato Grosso, Mato Grosso Do Sul, Minas Gerais and Sao Paulo. The remaining 49 per cent stake in the four Brazilian concessionaries is held by Furnas Central Electric SA (Furnas), a subsidiary of Eletrobras. In April 2015, EPM acquired a 22.14 per cent stake in Brazil-based local transmission utility Transmissora Aliança de Energía Eléctrica S.A. (TAESA) for BRL1.53 billion.[6]
The Colombian state-owned ISA Group is already an established player in Brazil’s transmission sector. In December 2016, ISA further strengthened its position by acquiring a 41.6 per cent equity stake in the transmission developer Transmissora Aliança De Energia Elétrica SA (TAESA), which currently holds 33 transmission concessions comprising 11,000 km of high voltage power lines in Brazil. In a BRL1.06 billion deal, ISA has acquired 26 per cent of TAESA’s ordinary shares and 14.9 per cent of its capital stock from Brazilian equity firms Fundo de Investimento em Participações Coliseu (FIP Coliseu) and Fundo de Investimento em Ações Taurus (FIP Taurus) 19.
Another acquisition deal that took place recently—in May 2017—in Brazil was for the concessionaire Interligação Elétrica Norte e Nordeste (IENNE). Under this, Companhia de Transmissão de Energia Elétrica Paulista (CTEEP)—a Brazil-based subsidiary of ISA—exercised its rights to acquire the entire equity interest of IENNE from Spain’s Isolux and local power company Construções e Participações S.A (Cymi Holding). Isolux holds a 50 per cent equity share and Cymi owns a 25 per cent equity share in IENNE. The deal cost CTEEP about BRL96.75 million, under which CTEEP purchased 164 million ordinary shares in IENNE from Isolux and 81.8 million ordinary shares from Rio de Janeiro-based Cymi Holding19.
[1] https://eletrobras.com/en/Paginas/Energy-Transmission.aspx
[2] https://publications.iadb.org/publications/english/document/Energy-Dossier-Brazil.pdf
[3] https://www.sec.gov/Archives/edgar/data/1439124/000119312512242237/d350457dex81.htm
[4] http://cemig.infoinvest.com.br/static/enu/estrutura_acionaria.asp?idioma=enu
[5] http://www.isacteep.com.br/en/isacteep/cteep-history
[6] https://www.globaltransmission.info/archive.php?id=30033