China State Grid studies purchase of Brazil’s CPFL Energia

10 August 2016

The China State Grid group is analysing the purchase of the Brazilian company CPFL Energia, a deal which could amount to US$13 billion, the biggest-ever investment by a Chinese company in Brazil, reports the Wall Street Journal.

CPFL Energia is Brazil’s largest private electric power production and distribution company, ranking third in size after state-held Electrobras and CEMIG.

The newspaper reports that the deal includes the assumption by the Chinese group of CPFL Energia’s liabilities of 18.3 billion reais (about US$5.8 billion).

The Chinese group is currently holding talks with other shareholders, among them Previ, Latin America’s largest pension fund, which holds a 29.4 percent stake in CPFL Energia.

China State Grid has already purchased from the Camargo Corrêa group 23 percent of CPFL Energia’s share capital, a 5.85 billion real (US$1.84 billion) deal announced in July.

In 2010 the Chinese group spent nearly US$1 billion to acquire seven small electric power transmission companies. (Macauhub/BR/CN)