Brazil Supreme Court backs deal boosting government role in Axia Energia

Axia Energia SA

11/12/2025 19:08

SAO PAULO, Dec 11 (Reuters) - Brazil's Supreme Court on Thursday approved an agreement between the government and power company Axia Energia AXIA5.SA, formerly known as Eletrobras, that increases federal influence over the firm and marks its exit from the nuclear energy business.

The ruling allows the government to proceed with pending processes, including a 2.4 billion reais ($444.07 million)debenture issuance.

The move helps the financially troubled state nuclear power operator Eletronuclear.

The agreement stemmed from a 2023 constitutional challenge to voting limits imposed on the government after the 2021 Eletrobras privatization.

Under the terms, the government now appoints three of 10 board members and one of five fiscal council members at the company.

Axia is no longer obligated to invest in nuclear projects such as Angra 3, and it sold its minority stake in Eletronuclear to J&F group.

($1 = 5.4046 reais)

 (Reporting by Leticia Fucuchima; Writing by Isabel Teles)

 ((Isabel.Teles@thomsonreuters.com;))