Brazil: China’s State Grid moves to buy 23% of CPFL

State Grid International Development Ltd, a wholly-owned subsidiary of State Grid Corp of China, plans to buy a 23 percent stake in Brazil’s largest power distributor, CPFL Energia SA from Brazilian builder Camargo Correa SA for 5.85 billion reais ($1.8 billion).

Other shareholders have the option to outbid State Grid or sell their stakes to the Chinese company on equal terms, which could increase the final size of the deal, which is subject to approval by Brazilian antitrust regulators.

State Grid is expanding its business globally with acquisitions across the world. Currently, it has invested in Italy, the Philippines, Brazil, Portugal and Australia.The company has said that it plans to expand in Brazil beyond the power transmission assets it already manages. CPFL has a large portfolio of power generation installations besides its power distribution network covering four Brazilian states.

Full Content: China Economic Net

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