July 5, 2017 / 4:52 PM / a year ago

CORRECTED-Brazilian antitrust watchdog approves Neoenergia, Elektro merger

(In first paragraph, corrects day to Tuesday from Wednesday)

SAO PAULO, July 5 (Reuters) - Brazilian regulators approved the merger of utilities Neoenergia SA and Elektro Redes SA without restrictions, according to a document published in the official gazette on Tuesday.

The transaction will have no adverse impact on competition, given that the resulting company will control less than 20 percent of a “strongly regulated” market, antitrust watchdog Cade said in the document.

Under the terms of the merger, Spain’s Iberdrola SA will hold a combined 52.5 percent stake in the new entity, which will operate in power generation, tranmission and distribution covering 13.4 million consumers.

State-controlled lender Banco do Brasil SA and Previ, the pension fund of the bank’s employees, will be minority shareholders. (Reporting by Luciano Costa; Writing by Tatiana Bautzer; Editing by Jeffrey Benkoe)

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