German power giant E.ON raises stake in Brazil's MPX

E.ON, Germany's biggest power supplier, said Thursday it will increase its stake in Brazilian electricity producer MPX to just over 36 percent.

E.ON -- which already acquired an 11.7-percent stake in MPX, a unit of EBX, in April 2012 -- "and its Brazilian partner EBX have today agreed on the increase of E.ON's stake in MPX," the German company said in a statement.

"In the first step, E.ON will acquire 24.5 percent of MPX from EBX" and in a second step, MPX would undertake a capital increase to which E.ON would subscribe, the statement said.

The total investment for E.ON would amount to around 800 million euros ($1.0 billion).

"Today's announcement is a confirmation of E.ON's strategic belief in the growth opportunities the Brazilian market offers with its positive outlook on long term power demand and economic growth prospects," said E.ON chief executive Johannes Teyssen.