Gerdau Moves to Full Control of Dona Francisca Hydroelectric Asset to Boost Renewable Self-Generation
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An update from Gerdau SA ( (GGB) ) is now available.
On June 15, 2026, Gerdau announced it had signed a binding share purchase agreement with Companhia Paranaense de Energia (COPEL) to acquire COPEL’s entire 23.03% equity stake in Dona Francisca Energética S.A. (DFESA) for an enterprise value of R$150 million, paid in cash and subject to customary conditions, including Brazilian antitrust approval. The deal also includes COPEL waiving its right of first refusal over Gerdau’s acquisition of Centrais Elétricas de Santa Catarina’s stake, enabling Gerdau, which currently owns 53.94% of DFESA, to move toward full ownership of the hydroelectric asset and consolidate control of its 125 MW Dona Francisca plant.
DFESA holds 85% of the concession for the Dona Francisca Hydroelectric Power Plant on the Jacuí River in Rio Grande do Sul, with firm energy of 72.5 average MW, about 66 average MW of which are allocated to DFESA. Following completion of the CELESC and COPEL transactions, totaling R$300 million in enterprise value, Gerdau will hold 100% of DFESA, increase its self-generation by 30.4 average MW, and fully utilize 65.94 average MW of firm energy, strengthening cost competitiveness and pushing self-generation above 50% of its power use in line with its decarbonization strategy.
The most recent analyst rating on (GGB) stock is a Buy
with a $5.25 price target.
To see the full list of analyst forecasts on Gerdau SA stock,
see the GGB Stock Forecast page.
Spark’s Take on GGB Stock
According to Spark, TipRanks’ AI Analyst, GGB is a Neutral.
The score is driven primarily by weakened financial performance due to materially compressed margins and cyclical earnings volatility, partly offset by a solid balance sheet and improving (but variable) cash flow. Technicals are supportive with a clear uptrend and positive momentum, while valuation is relatively attractive with a low P/E and a moderate dividend yield.
To see Spark’s full report on GGB stock,
click here.
More about Gerdau SA
Gerdau S.A., traded in Brazil as GGBR and on the NYSE as GGB, is a Brazilian-based industrial group with significant steel operations that increasingly integrates energy assets to support its production. The company focuses on enhancing cost efficiency and sustainability by expanding renewable self-generation to supply a substantial share of its electricity needs.
Average Trading Volume: 19,202,771
Technical Sentiment Signal: Buy
Current Market Cap: $8.77B
See more insights into GGB stock on TipRanks’ Stock Analysis page.
