The China State Grid Group has reached an agreement with current shareholders to have a controlling stake in Brazilian company CPFL Energia, the China Daily newspaper reported, citing sources close to the process.

The newspaper reported that Bonaire Participações, a private company controlled by investment fund Energia São Paulo FIA and Previ, the pension fund of the Bank of Brazil, approved the sale of 44.5% of CPFL Energia for 25 reais (US$7.8) per share.

The price per share offered for these two blocks of shares is the same as the Chinese group paid for a 23.6% stake owned by construction group Camargo Corrêa, in a deal made last July.

The China State Grid Group is currently carrying out due diligence on its deal with Camargo Corrêa, a process that should take another two weeks, after which it will send a letter to the shareholders of CPFL Energia to propose the purchase of their shares .

These purchases, when completed, will give the Chinese group 68.1% of the company, forcing it to launch a takeover bid, which may include the subsidiary CPFL Renováveis and to reach a value, including debt, of 50 billion reais (US$15.7 billion). (macauhub/BR/CN)