Cemig (CMIG4.SA)(CIG.N), the Brazilian power utility controlled by Minas Gerais state, may spend up to 3 billion reais ($1.7 billion) to buy control of rivals Coelce and Ampla, O Estado de S. Paulo newspaper reported on Thursday, citing people with knowledge of the situation.
According to Estado, Minas Gerais Governor Aecio Neves formalized Cemig's intention to purchase the power distribution companies the past weekend. Endesa (ELE.MC), the Spanish power holding company that controls both companies, has no intentions to sell any of its assets in Brazil, the daily said, citing recent remarks by Endesa executives.
Cemig is banking on acquisitions to expand nationwide and overseas, Estado said, citing Chief Financial Official Luiz Fernando Rolla. Cemig is also interested in assets in Chile, Colombia and Peru, he added.
Ampla (CBEE3.SA), which operates in Brazil's second most populous state of Rio de Janeiro, serves 2.2 million consumers. Coelce (COCE6.SA), which distributes electricity in the northeastern state of Ceara, serves about 2 million customers.
Cemig, Coelce and Ampla declined to comment on the Estado story.