State Grid Corporation of China (SGCC), a state-owned grid operator, has acquire controlling stake in a CPFL Energia SA, a Brazilian power distributor for R$5.85 billion (US$1.79 billion).
More concretely, SGCC has acquired a 23 % of the total company's shares from Camargo Correa SA.
CPFL Energia is the largest non state-owned group of electric energy generation and distribution in Brazil and the third biggest Brazilian electric utility company, after Eletrobras and CEMIG. CPFL Energia and its subsidiaries operates in the segments of generation, distribution and commercialization of electric energy and renewable energy.
CPFL’s legal and institutional relations vice-president, Luiz Eduardo Osorio said:
“We have developed this platform that we call ‘plug-and-play’. This was one of the big attractions for the Chinese. It’s this platform that State Grid can use for acquisitions in distribution and also in transmission if it wants, not only in Brazil but throughout South America.”