Previ, the largest pension fund in Brazil, has decided to sell its nearly 29% stake in CPFL, the largest private electricity group in Brazil, to China's State Grid International Development.
In July 2016, China's State Grid International Development reached an agreement with Brazilian industrial group Camargo Correa to acquire its 23% stake in CPFL for BRL 5.85bn (US$1.8bn). Other shareholders had then the option to outbid State Grid or to sell their shares to the Chinese group on equal terms. Bonaire Participações, which owns 15% in CPFL, is also considering selling its stake to State Grid. The transaction is subject to approval by Brazilian antitrust regulators.
CPFL accounts for 13% of the national distribution market in Brazil, supplying power to 7.8 million customers in 571 municipalities in the states of São Paulo, Rio Grande do Sul, Parana and Minas Gerais through eight distribution company. The group is currently acquiring AES Sul, which would raise its market share in the distribution market to 14.3%, providing energy to 382 of the 497 municipalities of Rio Grande do Sul.