RIO DE JANEIRO: China's State Grid signed a deal Tuesday to buy a majority stake in Brazil's electricity giant CPFL for $4.5 billion, offering a boost to a Latin American giant struggling with recession.
The purchase of a 54.64 percent stake in CPFL for 14.19 billion reals expands the Chinese company's presence in Brazil, a huge emerging market with some 200 million inhabitants.
Analysts say Chinese firms have been ramping up investments in Brazil, where local firms are selling off assets to help the weather the crisis.
Chinese companies currently have some $15.2 billion worth of investments in Brazil, according to Bloomberg news.
Another Chinese state energy company, CTG, has bought stakes in various power plants in Brazil since 2013.
The world's largest utility company and China's largest state-owned enterprise, State Grid has pursued deals around the world.
Its attempted purchase of Australian electricity network Ausgrid last year was blocked over national security concerns.
But it boasts other investments in Italy, the Philippines, Portugal and Hong Kong, the company said in a statement.
It entered the Brazilian market in 2010 and already operates transmission lines in the states of Rio de Janeiro and Sao Paulo.
It runs 10,000 kilometers (6,213 miles) of power transmission lines in Brazil and has another 6,000 kilometers under construction, the company said.
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