UPDATE 1-TerraForm, SunEdison cancel Brazil power deal worth $3.45 bln
* Deal was to involve share swap worth $3.45 billion
* SunEdison moved to cancel purchase of Renova stake
* Companies blame adverse local market conditions (Adds details of cancellation, comments from companies, context)
By Marcelo Teixeira and Luciano Costa
SAO PAULO, Dec 1 (Reuters) - Renewable energy company TerraForm Global Inc is pulling out of an agreement to take control of projects accounting for 2,200 megawatts of generation capacity due to adverse market conditions in Brazil, companies involved in the deal said on Tuesday.
TerraForm, a unit of U.S.-based SunEdison Inc, was negotiating to take control of generation assets from Brazilian renewable energy company Renova Energia SA in a share swap valued at 13.4 billion reais ($3.45 billion).
The deal started to wane when SunEdison decided not to proceed with a contract to buy a 15 percent stake in Renova.
SunEdison was expected to transfer about $250 million in its own shares to buy the Renova stake from Rio-based power company Light SA. The deadline for it to decide to proceed with the deal was on Monday, but SunEdison declined, Light said.
The stake sale was a condition for the larger TerraForm deal to go ahead, Renova Chief Financial Officer Cristiano Corrêa de Barros said in a filing with the local market regulator. Continuación...