SGCC Acquired CPFL Equity

On Jan.23, 2017 Brazil local time, SGCC completed the acquisition of a 54.64% stake in CPFL Energia S.A. from Camargo Correa S.A., Previ and Bonaire Participacoes S.A. in Rio de Janeiro, Brazil.

CPFL is the largest privately owned power company in Brazil, and its business includes distribution and new energy generation. CPFL has nine power distribution companies covering developed states of Sao Paulo and Nanda. Its service area is 304,000 square kilometers with a population of about 24 million and its annual distribution capacity is 70TWh, taking up 14.3% of the market share. It is Brazil's largest power distribution business. CPFL is a Brazilí»s leading company in power supply reliability and line loss and a benchmarking enterprise in Brazilian power distribution sector. CPFL is also the holding company of the largest renewable energy generation company in Brazil with an equity installed capacity of 1.01GW.

CPFL's assets and SGCC's existing transmission assets in Brazil will form a good synergistic effect. The Phase 1 and Phase 2 of Brazil's Belo Monte Hydropower UHV Transmission Project will deliver the hydropower resources in North Brazil to developed areas such as Sao Paulo and Rio over long distances. The São Paulo region is the main service area of CPFL, where the synergies are obvious.

After the transaction is completed, SGCC will fully cover businesses in transmission, distribution, new energy generation, and electricity sales to further enrich the company's portfolio in Brazil, significantly improving the anti-risk capability of its investment in the country. The successful implementation of the project will also export technologies and management experiences in distribution and new energy generation to Brazil, encouraging China's electric equipment to go global in the Brazilian market.

Since its entry into the Brazilian market in 2010, SGCC has completed the acquisition and stable operation of 14 transmission concession companies in Brazil, operating 10,000km transmission lines and supplying power to important areas like Brasilia, Rio and Sao Paulo. State Grid Brazil Holdings has become the second largest transmission company in Brazil. CPFL is a leading company in the Brazilian power industry. The project will further promote economic and trade cooperation between China and Brazil, expand China's investment in Brazil, and further deepen the production cooperation between two countries for mutual benefits and win-win cooperation.

Yang Qing, former SVP of SGCC, Zhu Guangchao, Deputy Chief Engineer and Director of Department of International Cooperation and representatives of State Grid International Development Ltd attended the closing ceremony.

Source: Department of International Cooperation

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