Brookfield still in talks for Renova takeover

Brookfield is still negotiating the purchase of a controlling stake in Brazilian renewable energy firm Renova Energia despite the end of an exclusivity deal, according to a securities filing.

The Canadian group secured exclusive negotiation rights with Renova's stakeholders in July, but the three-month period ended without an agreement, Renova's parent firm Cemig said in the filing.

Brookfield had reportedly offered to pay Cemig and its subsidiary Light 11.25 reais (around US$3.60) per unit of Renova. Each Renova unit comprises a common share and two preferred shares.

"The period of exclusivity has ended ... although this does not alter the stage of negotiation with Brookfield in relation to the transaction," Cemig said.

Brookfield is seeking energy, infrastructure and real estate opportunities in Brazil despite an ongoing economic crisis and the continued fallout of the Lava Jato corruption probe.

The biggest deal so far has been its acquisition – as the leader of a consortium – of a 90% stake in pipeline operator Nova Transportadora do Sudeste (NTS) from state-run firm Petrobras for US$5.2bn.

The company also paid US$2.5bn in March for controlling shares in TerraForm Global and TerraForm Power, both units of debt-laden US group SunEdison.

The deal handed Brookfield almost 4GW of renewable power assets in 11 countries, including Brazil, Chile and Uruguay.

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