China: State Grid to Ink $1.8 Bln deal with Brazilian power firm

State Grid Corporation of China, the country’s top grid operator, says it will buy the controlling stake in a Brazilian power distributor for 5.85 billion reais, or $ 1.8 billion, to further cement its position in Brazil’s electricity sector.

CPFL Energia SA, one of Brazil’s major privately-owned power generation and distribution companies, said on July 2 that State Grid plans to buy 23 percent of its shares that are currently owned by Camargo Correa SA, another Brazilian conglomerate with businesses in engineering, real estate, textile and shipbuilding.

The acquisition will be led by State Grid International Development, a subsidiary created in 2008 to invest in and operate overseas utilities, CPFL said.

The deal is subject to approval by Brazil’s antitrust regulators and electricity sector regulators, according to the statement.

This will add to State Grid’s existing investments in the Latin American country worth billions of dollars. State Grid has a 30-year license to operate almost 6,000 kilometers of power transmission lines that connect some of Brazil’s largest cities, making the Chinese firm the fifth largest energy transmission company in Brazil, data from its Brazilian unit’s website showed.

Full Content: China Economic Review

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