Brazil's Neoenergia S.A. and Elektro Redes S.A. (BOVESPA:EKTR4) are reportedly in merger talks as Spanish group Iberdrola, S.A. (BME:IBE) which holds stakes in both companies, seeks to consolidate its local assets. The proposal has received the backing of Iberdrola's fellow Neoenergia stakeholders Banco do Brasil (BB) and Previ. The deal would facilitate plans for BB and Previ the former's pension fund to later sell their stakes in Neoenergia.