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Update: Market Chatter: Equatorial, Iberdrola Explore Acquisition of Enel's Brazil Assets Amid Regulatory Pressure

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(Updates with response from Enel in the fourth paragraph.)

Brazilian utility Equatorial Energia and Spain's Iberdrola are discussing a potential acquisition of Italian utility giant Enel's Brazilian assets, according to a report by Valor Economico, citing three sources familiar with the matter.

This comes amid authorities in Sao Paulo considering revoking Enel's power concessions, following a series of outages during periods of heavy rains in recent years.

According to the report, both companies believe an M&A transaction remains a viable outcome, as they hold discussions with Enel's management in Italy.

Enel has, however, denied these reports, with the company's media team tellingthat it remains committed to renewing its Sao Paulo concession, while reiterating its goals in Brazil, "a country that is and will continue to be strategic for Enel, one of the world's largest energy groups."

Equatorial Energia and Iberdrola did not immediately respond to' request for a comment on this story.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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