Go Out Pace, The State Grid Or The Full Acquisition Of Brazil's Largest Distribution Enterprises

- Oct 20, 2017 -

After the acquisition of more than 50% stake, China's national grid may further hold Brazil's largest distribution enterprise CPFL, layout overseas and next city.

According to the news, China's State Grid will acquire CPFL45% stake in Brazil. If the news is true, it means that the national grid is close to 100 percent holding CPFL, and further to its overseas layout goals.

The goal of the national grid is that by 2020, the scale of overseas power assets will reach 10% of the total assets of the company, and the contribution rate of international business profits will exceed 20%. In May 8th this year, according to reports, as of then, the State Grid overseas investment amounted to more than 10 billion U.S. dollars, the total assets amounted to 40 billion U.S. dollars.

In recent years, Brazil has been the main battlefield of the "going out" of the national grid. In December 2010 and December 2012, the State Grid purchased 100% shares of 12 power concession companies in Brazil for two times, with a total equity investment of $1 billion 681 million.

"Go out" pace, the state grid or the full acquisition of Brazil's largest distribution enterprises

According to reports, in January 24th this year, the State Grid and Brazil kamagua group, Puri dimensional fund and the Bonner foundation to complete delivery options, the successful acquisition of a 54.64% stake in Brazil CPFL company. The project is the largest overseas investment project of the state grid.

CPFL is the largest private power enterprise and the largest power distribution enterprise in Brazil. Its wholly owned 8 distribution franchise company, covering the economically developed St Paul and South River, 7 million 800 thousand service users, line length of 247 thousand kilometers, distribution capacity of 60 billion, accounting for Brazil distribution market share of 13%.

State Grid said, CPFL company's power supply reliability, line loss and other operating indicators in Brazil are in a leading position, but also holding the largest New Energy Company in Brazil, in the new energy rights and interests installed capacity of 1 million 10 thousand kilowatts.

After the completion of the transaction, the national Power Grid Corp will achieve full coverage of new energy power generation, transmission and distribution and sale of electricity business in the Brazil market, in addition to the direct drive power national Power Grid Corp and new energy power generation technology and management experience output to Brazil, will also promote China Power equipment going out".

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