MILAN, April 16 (Reuters) - Enel may lose its power concession in the Brazilian city of Sao Paulo, putting at risk financial and intangible assets worth 3.34 billion euros ($3.9 billion) and 595 million euros in goodwill, auditors said in the group's annual report.
Enel's 2025 financial statement gives a "true and fair view" of the financial position of the Italian utility, auditing firm KPMG said in the recently published annual report.
However, KPMG added that the recoverability of Enel's assets and goodwill related to the concession in Brazil's largest city and its potential renewal had been a key matter in auditing the power group's accounts.
Brazil's power regulator Aneel decided earlier this month to move forward with a forfeiture process that could ultimately lead to the termination of the power distribution concession held by a local unit of Enel in Sao Paulo, preventing the automatic renewal of its contract, which expires in 2028.
($1 = 0.8477 euros)
(Reporting by Francesca Landini; Editing by Joe Bavier)
