State Grid intends to acquire 86 billion 400 million of Brazil's third largest power companies.
[cable network] previously, the projects gained by the State Grid in Brazil were mostly transmission line projects. The successful acquisition of CPFL means that the State Grid has power generation, distribution and grid assets in Brazil.
China State Grid, the world's largest power grid company, is poised to retake CPFL, more than a month after it decided to buy a 23.6% stake in Brazilian power company CPFL Energia.
On August 10, it was reported that the State Grid was planning to acquire all the shares of Brazilian Electric Power Company CPFL Energia and one of its listed subsidiaries, involving $13 billion. If the transaction is in line, it is expected to become China's largest investment in Brazil.
Earlier, State Grid had reached an agreement with CPFL to buy a 23.6% stake in CPFL for 5.85 billion Reals ($1.870 billion). In July 2nd, CPFL announced the announcement, confirming the news.
CPFL, Brazil's third-largest power company, has a installed capacity of 3100 MW by the end of 2015 and accounts for 13% of Brazil's distribution business.
State Grid initially planned to acquire a 23.6% stake, originally held by Camargo Correa S.A. Sao Paulo Industries, one of Brazil's largest private companies, deals with energy, transportation, engineering consulting and so on. It is now in financial trouble because of corruption involving Petrobras and has to start selling assets.
State Grid has been deeply cultivated in the Brazilian market for many years. In 2010, State Grid Brazil Holding Company was established in Rio de Janeiro. It belongs to State Grid International Development Limited (hereinafter referred to as State Grid International Company). But previously, most of the projects in Brazil were transmission line projects. The successful acquisition of CPFL means that the State Grid has power generation, distribution and grid assets in Brazil.