Photo: Unsplash.
China Southern Power Grid Co. is in advanced talks to acquire a majority stake in Transelec S.A., Chile’s top power transmission firm. The Chinese company already holds 28% of Transelec and is considering partnering with Patria Investments Ltd. and a Chinese sovereign wealth fund to purchase the remaining 72% held by three Canadian pension funds.
The deal, discussed for nearly two years, could exceed USD 4 billion and may close within weeks, ranking among China’s largest Latin American acquisitions in 2025.
The Canadian stakeholders are the Canada Pension Plan Investment Board (CPPIB) with 27.7%, British Columbia Investment Management Corp. (BCI) with 26%, and the Public Sector Pension Investment Board (PSP) with 18.5%. None has commented, but the move underscores China’s long-term push into strategic infrastructure.
Transelec is vital to Chile’s energy system, operating over 10,000 km of high-voltage lines and integrating renewable capacity from solar, wind, and hydro sources into the grid. However, the potential takeover raises debate in Chile about foreign control of critical infrastructure, given that Chinese state-owned companies already hold significant assets, including Chilquinta Energía and CGE.
Chile’s antitrust regulator, the Fiscalía Nacional Económica (FNE), will need to review the transaction. Although it has approved major Chinese acquisitions before, growing scrutiny of foreign ownership in sensitive sectors could complicate approval.
This move adds to Beijing’s expanding footprint in Latin America’s energy sector, following CSPG’s USD 3 billion acquisition of Enel’s Peruvian assets. By investing in power transmission, China is strengthening both its role in the region’s energy transition and its broader geopolitical influence.
* Original text in Spanish. Translated by Large Language Model (LLM) technology.
Main Source:
Gigante chino de energía avanza en conversaciones para adquirir la chilena Transelec – Bloomberg
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