China's State Grid Corporation says it is to buy a majority stake in CPFL Energia, one of Brazil's largest privately-owned power generation and distribution companies.
Camargo Correa SA has announced that it will sell a 23 per cent stake in CPFL to State Grid for 5.85 billion reais. The acquisition will be led by State Grid International Development Co. Ltd., a subsidiary created in 2008 to invest in and operate overseas utilities
The deal will enable State Grid to expand its operations beyond the power transmission assets that it already controls, including a concession to operate almost 6000 km of power transmission lines.
The deal is subject to approval by Brazil's antitrust regulators and electricity sector regulators.