China Southern Power Grid is in advanced talks to acquire a controlling stake in Chilean power transmission company Transelec SA in what could be one of the biggest Chinese outbound deals this year.
China’s second-largest electricity network operator, which already holds nearly 28% of Transelec, is considering teaming up with Latin America-focused alternative asset manager Patria Investments Ltd and a Chinese sovereign wealth fund to bid for the stakes held by three Canadian pension funds.
A potential deal, which has been discussed for about two years, could be valued at more than US$4 billion.
The parties would still need to obtain approval from Chilean regulators for a deal, which could be a challenge given that China already controls much of the South American country's power distribution market.
Transelec is Chile's largest electricity transmission company, operating high-voltage lines and connecting generation centers with distributors to help integrate growing renewable capacity into the grid. It has more than 10,000km of power lines across the country.
The pension funds that own the remaining 72% of Transelec are the Canada Pension Plan Investment Board, British Columbia Investment Management Corporation, and the Public Sector Pension Investment Board.
CPPIB is Transelec's second-largest shareholder with a 27.73% stake, while BCI and PSP hold 26% and 18.48%, respectively, according to Transelec's latest annual report.
China Southern Power acquired its current stake in Transelec from Brookfield for approximately US$1.3 billion in 2018. The Chinese company has been expanding its reach in Latin America, including a ~US$3 billion acquisition of Enel SpA's Peruvian assets.
In addition to China Southern Power, State Grid Corporation of China has a significant presence in Chile, having acquired businesses such as Chilquinta Energía SA and Compañía General de Electricidad SA, known as CGE, earlier this decade.
https://bloomberg.com/news/articles/2025-09-17/china-southern-power-is-said-in-talks-to-buy-chile-s-transelec?embedded-checkout=true…
China Southern Power Grid is in advanced talks to acquire a controlling stake in Chilean power transmission company Transelec SA in what could be one of the biggest Chinese outbound deals this year.
China’s second-largest electricity network operator, which already holds nearly 28% of Transelec, is considering teaming up with Latin America-focused alternative asset manager Patria Investments Ltd and a Chinese sovereign wealth fund to bid for the stakes held by three Canadian pension funds.
A potential deal, which has been discussed for about two years, could be valued at more than US$4 billion.
The parties would still need to obtain approval from Chilean regulators for a deal, which could be a challenge given that China already controls much of the South American country's power distribution market.
Transelec is Chile's largest electricity transmission company, operating high-voltage lines and connecting generation centers with distributors to help integrate growing renewable capacity into the grid. It has more than 10,000km of power lines across the country.
The pension funds that own the remaining 72% of Transelec are the Canada Pension Plan Investment Board, British Columbia Investment Management Corporation, and the Public Sector Pension Investment Board.
CPPIB is Transelec's second-largest shareholder with a 27.73% stake, while BCI and PSP hold 26% and 18.48%, respectively, according to Transelec's latest annual report.
China Southern Power acquired its current stake in Transelec from Brookfield for approximately US$1.3 billion in 2018. The Chinese company has been expanding its reach in Latin America, including a ~US$3 billion acquisition of Enel SpA's Peruvian assets.
In addition to China Southern Power, State Grid Corporation of China has a significant presence in Chile, having acquired businesses such as Chilquinta Energía SA and Compañía General de Electricidad SA, known as CGE, earlier this decade.
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