China's State Grid to take $1.8bn stake in Brazil's CPFL

CPFL Energia SA, Brazil’s largest power distributor, said on Friday that the world’s largest utility, China’s State Grid International Development Ltd, will buy a controlling stake in the company for 5.85 billion reais ($1.8 billion), Reuters reports. Camargo Correa SA, a privately held Brazilian engineering, real estate, textile and shipbuilding company, is selling a 23% stake, CPFL said in a securities filing. State Grid will pay 25 reais for each of Camargo’s 234 million CPFL shares. Other shareholders have the option to outbid State Grid or sell their stakes to the Chinese company on equal terms, which could increase the final size of the deal. The deal is subject to approval by Brazilian antitrust regulators, Camargo Correa said in a letter included in the filing.