On January 21, 2025, Gerdau S.A., one of the largest steelmakers in Brazil, announced it will acquire all shares of Rio do Sangue S.A. and Paranatinga Energia S.A., which own two small hydroelectric plants in Mato Grosso, Brazil, for around R$440 million, aiming to expand clean energy supply for its operations in Brazil.

The acquisition was in line with Gerdau’s strategy to improve competitiveness by boosting its renewable energy self-production, contributing to its decarbonization efforts, and meeting 8% of its energy requirements in Brazil.

Gerdau said that the payment will be made in cash on the closing date using its resources, but that the transaction remains subject to approval by Brazil’s competition authority.