By Kari Williamson

This is E.ON’s first move into Brazil, a target growth market for the German group, which says it has agreed to invest about R$850m (US$471m) to gain its minority holding in MPX.

Analysts say the deal helps E.ON to break out of its sluggish native European markets into fast-growing economies such as Brazil.

“For us, MPX is more than a great investment opportunity in Brazil and Chile,” says Johannes Teyssen, CEO of E.ON. “The strategic partnership combining MPX’s local expertise and access to natural resources with E.ON’s global scale and capabilities, will enable us to create significant value in thermal and renewable power generation in Brazil.”

MPX has a 1MW solar power plant in operation in Brazil, which it is in the midst of doubling in size. The group has not won any state contracts for wind-power, although it is reportedly working on a large project.

E.ON and MPX expect to close the deal in the second quarter of this year.