Macquarie Energy Acquires Minority Interest in Brazilian Power Trading Platform
New York, 26 November 2014
- Nova Energia ranks among the 10 largest electrical energy traders in Brazil
- Acquisition marks Macquarie Energy's entrance into Brazil
Macquarie Group's ("Macquarie") (ASX:MQG; ADR:MQBKY) Energy Markets Division ("Macquarie Energy") today announced that it has entered into an agreement to acquire a minority interest in Nova Energia ("Nova"), a top 10 marketer and trader of electricity in Brazil.
"Nova has built a well-regarded and profitable electrical energy trading business with a strong market position," said Nick O'Kane, Global Head of Energy Markets, Macquarie Group. "The Nova partners understand the market dynamics and regulatory environment in Brazil and take a conservative approach to risk that complements our own strong risk management framework. We are pleased to be able to establish a strong foothold in Brazil by partnering with this experienced team."
Founded in 2009, Nova provides trading, risk management, and consultancy services to producers and consumers in the Brazilian electrical energy market. With offices in Sao Paulo and Recife, Nova accounts for more than 25 million MWh of electrical energy sold and manages over 1,800 MW of installed capacity. Nova's partners include Gustavo Doná Machado, André Bonaldo, Wagner Braz, Gustavo Coelho, Rafael Bispo and Glaucio Oliveira.
"We are delighted to enter into this transaction with an established player like Macquarie Energy," said Gustavo Machado , Partner, Nova Energia. "Macquarie Energy has a strong track record in the global commodities markets. We are confident that their expertise and market credibility will help us to further grow our market share and expand our presence in Brazil."
As part of the transaction, Macquarie Energy will have two seats on Nova's Board and minority shareholder rights. Macquarie Energy will provide Nova with additional expertise and input on managing credit, market and operational risks. Day-to-day management decisions will continue to be made by the current management of Nova. Nova will continue to manage its balance sheet independently.
The acquisition marks Macquarie Energy's entry into Brazil's electrical energy sector, but Macquarie has been active in Brazil since 1999. Through its representative office in São Paulo, Macquarie provides financial solutions for local Brazilian companies associated with global commodity markets, including pre-export financing, structured stock/ inventory financing and structured risk management products. Macquarie Agricultural Funds Management (MAFM) provides asset management services from offices in São Paulo and Ribeirão Preto.
"We feel the Brazilian power trading market represents a significant opportunity," added O'Kane. "We look forward to working with management as they continue to grow the business.
Terms of the transaction were not disclosed.
About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie's main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs approximately 14,100 people and has assets under management of over US$372 billion (as of September 30, 2014).
Macquarie's Energy Markets Division participates in a wide range of energy markets globally. Its core focus is providing a broad range of risk management and financing solutions to clients. The business has a strong global presence with expertise in both physical and financial markets across the energy commodities spectrum, including natural gas, power, oil, refined products, LNG, coal, and uranium. Macquarie has been committed to the energy sector for over 10 years, and currently has over 230 professionals in 11 offices dedicated to the energy markets. Macquarie's wide range of capabilities allow it to provide comprehensive solutions to meet the needs of clients with exposure to the energy markets. It currently participates in the power markets in the United States, Europe and Australia. It also participates in the Natural Gas markets in Europe and North America, and is the 4th largest physical gas marketer in North America.
Macquarie Energy is a part of Macquarie's Fixed Income, Currencies and Commodities (FICC) business group. Through FICC Group, Macquarie is active in a broad range of financial and physical commodities markets globally, with a worldwide team of professionals who have in-depth knowledge across a range of commodity sectors.
About Nova Energia
Nova Energia was founded in 2009 and in 2013 its revenues exceeded R$ 530 million, placing it among the largest power traders in Brazil. In addition to power trading and tailor-made solutions, renders management, representation before the CCEE (Power Trading Chamber), advisory and consultancy services to various agents in the power sector. It currently has in its portfolio the management of 55 assets considering large-scale power consumers; hydraulic, wind and gas power plants; and, especially, sugar-cane bagasse thermoelectric plants, totaling approximately 1800 MW of capacity - over 10% of all biomass generation market.