China State Grid has completed the purchase of a stake of 54.64% in Brazilian electricity company CPFL Energia, for which it paid 14.190 million reais (US$4.5 billion), according to separate statements issued on Tuesday.
The group, which in Brazil already controls a power transmission network covering about 10,000 kilometres, entered the Brazilian market in 2010 when its local subsidiary won in April 2016 an auction to manage two new transmission lines.
CPFL Energia is the main non-state producer of electricity in Brazil and the third largest in the country, with a 14.3% market share, supplying electricity to millions of people and being particularly active in energy production from renewable sources.
CPFL “has invested heavily in the Brazilian electricity market, having acquired a total of 14 power transmission lines that provide electricity to the Brazilian states of São Paulo and Rio de Janeiro,” one of the statements said.
The Chinese group said in the statement that with this acquisition it intends to considerably increase coverage in the Brazilian market in the sectors of “transmission and distribution” and, above all, the generation of electricity from renewable energy. (macauhub)