(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)