The Government of Brazil has approved the transaction to auction a 61% stake of Eletrobras to private companies. Headquartered in Rio de Janeiro, Eletrobras is Latin America's biggest power utility company responsible for approximately 31% of generating capacity, 47% of transmission, and 7% of electricity distribution in Brazil. Eletrobras has the capacity to produce 49,801 MW of energy with its 227 electricity generation units.

The government expects to raise BRL25 billion (US$5 billion) from the transaction, which will be used to renew concessions for hydroelectric plants and transmission lines. The Brazilian government will retain a golden share to veto hostile takeovers and other strategic threats.