Camargo acquires remaining 50% of VBC Energia (Brazil)

Camargo Correa to Buy Votorantim’s CPFL Energia Stake

Camargo Correa SA agreed to pay Grupo Votorantim 2.56 billion reais ($1.12 billion) for the 50 percent it doesn´t already own of VBC Energia SA, a holding company which has 28 percent of power supplier CPFL Energia SA.

The purchase will be completed by Feb. 20, VBC said in a statement to Brazil’s securities regulator. VBC is the second- biggest shareholder in CPFL, Brazil´s largest private-sector electricity supplier. Previ, Banco do Brasil SA´s employee pension fund, is the largest with a 31 percent stake.

Votorantim Group, Brazil’s largest industrial group, is selling assets and cutting costs because of the credit crisis and currency derivatives losses. The Sao Paulo-based company last year spent 2.2 billion reais to settle all its currency wagers with banks after betting the real would gain in value.