Brazil’s richest man welcomes German utility investment

The richest man in Brazil, Eike Batista, has closed a deal with the German energy giant E.ON (EONGY, quote) to take a stake in his company MPX Energia (MPXEY, quote).

With this partnership, the companies will be roughly joint partners in a joint venture developing coal, gas and renewable power generation projects across South America.

“There won’t be an imbalance. There will be full equity,” MPXEY CEO Eduardo Karrer told analysts.

Karrer added that the deal will not alter MPX or its strategic plan.

Although officially the total investment budget has not been revealed, sources close to the deal told Reuters that about BRL 18 billion ($10 billion) is at stake here.

E.ON is also taking a 10% stake in MPX proper, investing $560 million to increase the Brazilian company’s capital.

Wind and solar are core focus areas for the venture.