China Inc. Pursues Power, Glory With Big Brazil Deal

10 Aug 2016   Brazil, China

China Inc. is looking to win a gold medal in deal making with a $13 billion takeover of a Brazilian electric company. State Grid Corp. of China, the world’s largest electricity provider by revenue, is wooing shareholders of CPFL Energia SA CPL 0.50 % and a listed subsidiary, according to people familiar with the situation. It expects to secure stakes from big holders this month before making a full offer to the rest, according to the people. The $13 billion takeover value includes the assumption of debt. The deal would be China’s biggest-ever investment in Brazil—and a fresh dose of foreign capital for a country slogging through one of its deepest recessions ever. Highly profitable, cash-flush State Grid has been deploying more funds overseas as China’s economic engine slows ; power demand in the first half of 2016 was up just 2.7% from a year earlier. In 2014, State […]

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