Gerdau is moving to increase its ownership in Dona Francisca Energética S.A. by acquiring the 23.03% stake held by Celesc for an enterprise value of R$150 million. If completed, the deal will lift Gerdau’s DFESA ownership from 53.94% to 76.97%. That increases Gerdau’s allocation of firm energy from about 35.6 average MW to roughly 50 average MW. DFESA controls 85% of the consortium operating the 125 MW Dona Francisca hydropower plant on the Jacuí River.

The key shift is this: Brazilian industrial buyers are not just signing renewable PPAs anymore. They are moving to deepen control of contracted hydro assets that directly improve power self-sufficiency, reduce exposure to volatile electricity prices, and support decarbonization goals. This is a balance-sheet and margin-protection move, not a symbolic ESG trade.

That matters because Brazil’s M&A market has already shown strong demand for hydro platforms and contracted operating assets. Enerdatics noted that Brazil’s 2025 deal flow was led by hydro transactions and platform investments, with buyers favoring stable, long-term cash-flowing assets over riskier development plays.

Gerdau’s DFESA move fits that pattern. The company is paying for greater dispatch certainty from an operating hydro asset rather than pursuing fragmented renewable exposure. Similar themes are visible across Brazil energy M&A, where buyers have preferred operational portfolios with contracted revenues and strategic control.

This signals that Brazil power M&A is widening beyond utilities and PE. Large industrials now look increasingly willing to acquire deeper ownership in generation assets when those deals improve input-cost competitiveness.

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