National grid is expected to acquire Brazil CPFL"
Later with the world's leading ultra-high voltage technology to Brazil, has been deeply rooted in the Brazilian power transmission market in China State Grid Corporation plans may have to be developed sights on the whole industry chain, to enter the power generation and distribution markets.
According to foreign media quoted sources familiar with the matter, the State Grid Corporation of China (hereinafter "State Grid" below) is seeking a price of $ 13 billion acquisition of Brazilian power company CPFL Energia SA (hereinafter referred to as "CPFL"), under a move it's the world's largest power company deeper into the Brazilian market.
July 2016, CPFL announced that National Grid will spend 5.85 billion reais (about 12 billion yuan) acquisition of Sao Paulo, Brazil Industry Group (Camargo Correa SA) and some 23% stake in CPFL. According to foreign media reports, citing sources, said the national grid is expected this month, there will be other large shareholders to get more shares of CPFL, which could trigger a general offer.
Sao Paulo, Brazil Industry Group is one of Brazil's largest private company, which operates across the areas of cement production, energy and transport franchising, engineering consulting and construction, infrastructure, the current deep financial crisis, the company is in a restructuring and management transitional phase. CPFL is Brazil's third-largest power company, Camargo Correa in the performance report for 2015 said, CPFL distribution business in the Brazilian distribution market share of 13%; power generation, CPFL is Brazil's second largest private sector power generation capacity By the end of 2015, installed capacity of 3100MW, the target to the 2018 3300MW.
Brazil, local media disclosed information from the display, the national grid for CPFL already interested. As early as four years ago, Sao Paulo Industrial Group has begun to be considered as a target share purchases. In Santander (Santander) with the help of Merrill Lynch recommended that the national grid into action. But formal negotiations may last six months or something.
Similar to the allocation of resources in Brazil and China, the energy center and an inverse distribution load centers, require large-scale, long-distance transmission, which is exactly the unique expertise of the national grid. Meanwhile, the BRIC countries of Brazil, rich resources, huge market power rapidly growing population is also formed a basis for the country in the development of the network in South America. So, over the past few years, the national grid operator by transmission assets in Brazil, and Brazil and then rooted firmly secured by the South American market.
In order to facilitate investment and operating transmission assets in Brazil, the State Grid Corporation in 2010 specifically incorporated holding company State Grid Brazil in Rio de Janeiro. February 2014, the State Grid Corporation and the Brazilian National Electric Power Company (Eletrobras) :49% to 51% share over the successful bidder consortium consisting of Brazil beautiful mountain hydropower HVDC sent projects with concession period of 30 years. As a follow-up, in July 2015, the State Grid Corporation won the bid for independence and to participate in bidding Brazil beautiful mountain hydropower ± 800 kV HVDC sent two concession operating items, operating concession period of 30 years.
At present, State Grid Brazil Holding company is already Brazil's third-largest power operator, also for two consecutive years was named the best Brazilian power company.
At the time of the Rio Olympic Games, from the Northeast and Midwest about inside, partially charged Brasilia, Sao Paulo, the three Olympic cities are being transported from the China State Grid operated by the transmission line.
In addition to Brazil, the State Grid has entered the Philippines, Portugal, Australia and other markets, overseas expansion path has become more sophisticated. With high-speed rail and nuclear power, as the national grid of UHV technology has become China going out a "business card."
Senior analyst Cao Yin had the power industry analysis, the success of the State Grid Corporation of the Philippines and Portugal, the market gained, coupled with overseas projects than domestic better return on investment and infrastructure had been laid in Brazil, making it more self-confidence to implement Overseas Investment.
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