State Grid Corporation of China $1.8 billion acquisition of stake in CPFL Energia

Overview:

• State Grid Corporation of China, China's top grid operator, has signed a $1.8 billion deal to buy a 23% controlling stake in Brazilian's largest power distributor CPFL Energia from Camargo Correa.
• Camargo Correa is a Brazilian privately owned conglomerate with businesses in engineering, real estate, textile and shipbuilding.
• State Grid, a Chinese state-owned enterprise, has existing investments in Brazil, the Philippines, Portugal, Australia and Italy.
• The deal was led by State Grid International Development Co, a subsidiary investing in and operating overseas utilities.
• Sullivan & Cromwell (Sergio Galvis, Werner Ahlers, David Spitzer) is advising State Grid Corporation of China alongside Veirano Advogados (Carlos Lobo, Lior Pinsky, Tiago Figueiró) as Brazil counsel.
• Mattos Filho Veiga Filho Marrey Jr & Quiroga Advogados (Sergio Silva, Daniel de Miranda) is representing Camargo Correa.

Wai Yee Tsang - Journalist - Asia-Pacific