The Chinese State Grid acquires a Brazilian power company for 525 million dollars

Sao Paulo, Jul 16 (.) .- The company CPFL Energía, of the Chinese group State Grid, was awarded this Friday control of the State Electric Power Transmission Company of Rio Grande do Sul (CEEE-T), in the south of Brazil, for 2,670 million reais (525 million dollars).

In an auction held on the Sao Paulo Stock Exchange, the firm controlled by State Grid acquired 66% of CEEE-T’s total share capital, offering 57% more than the minimum price required by the authorities.

The group acquired the asset after a show of hands dispute with the Brazilian Energisa, which reached 2,660 million reais (523 million dollars) and MEZ Energía, which remained in its initial launch of 2,035 million reais (400 million reais). of dollars).

Proposals were also presented by the Cymi group, a subsidiary of the Spanish group ACS, which remained at 1,958 million reais (385 million dollars), and the Compania de Transmission de Energía Eléctrica Paulista, which controls the Colombian ISA, with an offer of 1,925 million reais (380 million dollars).

All in all, CPFL Energía will assume control of the Rio Grande do Sul state company, which currently operates some 6,000 kilometers of transmission lines and 56 substations in the border region with Uruguay and Argentina.

“We are very happy with this acquisition. CPFL already has a long history of alliance with Rio Grande do Sul and now that association is increasing even more,” said CPFL president Gustavo Estrella, who also promised “a lot of investment.”

The operation must still be approved by the National Electric Power Agency (Aneel, the sector’s regulatory body) and the Administrative Council for Economic Defense, an agency that fights monopolies in Brazil.

The remaining third of the shares of the transmission company belong to the state company Eletrobras, which -after the contest this Friday- will be able to exercise its right to “tag-along”, that is, to sell its participation under the same conditions.

Eletrobras, the largest in the electricity sector in Latin America, is also in the process of privatization, after Congress approved last month a project to start a capitalization process for the company without the participation of the Brazilian state.

(c) . Agency

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