Brazil’s Supreme Court Resumes Review of Union–Axia Deal on Eletrobras Voting Cap

Overview

• The STF moved the case back to the physical plenary with oral arguments after a highlight by Alexandre de Moraes, with three prior votes already cast to approve the deal by Kássio Nunes Marques, Dias Toffoli and Edson Fachin.
• The dispute centers on whether Law 14,182/2021 can limit any shareholder’s voting power to 10%, a rule the AGU challenged in 2023 while seeking voting rights proportional to the Union’s roughly 43% stake.
• Under the pact, the Union would cease contesting the 10% cap and would gain representation on the board and fiscal council while it holds at least 20% of common shares, with three seats on a 10-member board as stated by Axia’s counsel.
• The agreement relieves Axia of additional obligations to finance or operate nuclear ventures, including the Angra 3 project.
• The package includes Axia’s sale of its Eletronuclear stake to J&F for R$535 million, with J&F assuming R$2.4 billion in debentures tied to a conciliation term with the Union.