Trench Rossi Watanabe advises Casa dos Ventos on Anglo American PPA

Brazilian law firm Trench Rossi Watanabe, in cooperation with Baker McKenzie, has advised Casa dos Ventos on its granting of mining company Anglo American the option to acquire the majority of the voting capital of three special purpose companies that operate wind farms to supply the mining company under power-purchase agreements (PPAs).

This transaction will allow London-based Anglo American, one of the world’s largest mining companies, to become an incentivised energy self-producer, pursuant to the applicable law governing the Brazilian electric power sector.

Casa dos Ventos Energias Renováveis  is a Brazilian wind and solar power developer that operates projects in various Brazilian states, including Ceará, Rio Grande do Norte, Piaui, Pernambuco, Paraiba and Bahia.

The transaction is valued at 2.4 billion reais, considering a total investment in eight wind farms, out of which three wind farms are reserved to the PPA with Anglo American.

This is a corporate PPA deal, which involves not only a regulatory, commercial and PPA agreement but also a corporate/M&A type of deal embedded in a long-term equity purchase option.

This is a unique structure developed jointly with Casa dos Ventos and is expected to disrupt the traditional way of doing business in the Brazilian power market, the law firm said.

Trench Rossi Watanabe’s team was led by leading partner José Roberto Martins (pictured), with associate Paula Ganem. 

Anglo American was advised by law firm Ulhôa Canto, whose team was made up of Isabel Lustosa, Alberto Büll, Pedro Chueiri, Pedro Cordelli and Lais L Goldenstein.

Casa dos Ventos’ in-house counsel was Elisa Pascoal S. Caversan, while Anglo America’s was Guilherme Sales.