China’s State Grid Makes a $3 Billion Push Into Latin America
- First overseas deal for Chinese company in almost a year
- Spanish gas company has been under pressure to boost returns
Chinese energy companies have strengthened their presence in Latin America in the last few of years.
Photographer: China Photos/Getty Images
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State Grid Corp. of China will pay 2.57 billion euros ($3 billion) for an electricity network company in Chile, its first overseas deal in almost a year and a move that resumes its expansion abroad.
The Spanish natural gas and power company Naturgy Energy Group SA said it agreed to sell its 96% stake in Chilean electricity networks unit Compania General de Electricidad SA. The deal, reported earlier by Bloomberg News, will give the Chilean assets an enterprise value of 4.3 billion euros and Naturgy a 400 million-euro gain.