By Inti Landauro

PARIS--French power utility Electricite de France SA (EDF.FR) said on Friday it agreed to buy a 51% stake in SINOP Energy, a Brazilian company that is building a hydroelectric dam, for an undisclosed amount.

The dam and its 400-megawatt power plant will be ready for operation in the second half of 2017, the French company said. EDF will team up with two units of Brazilian utility Eletrobras Patricipacoes SA (LIPR3.BR) in the project.

EDF bought the stake from Brazilian electricity company Alupar as part of its strategy to expand abroad where markets offer better prospects than in France.

Write to Inti Landauro at inti.landauro@wsj.com

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