China's State Grid has concluded a deal to buy a majority stake in Brazil's electricity giant CPFL for $4.5 billion, the companies announced Tuesday.
The purchase of a 54.64 percent stake in CPFL for 14.19 billion reals will advance the Chinese company's presence in Brazil, a huge market with some 200 million inhabitants.
The world's largest utility company and China's largest state-owned enterprise, State Grid has pursued deals around the world.
Its attempted purchase of an Australian electricity network last year was blocked over national security concerns.
But it boasts other investments in Italy, the Philippines, Portugal and Hong Kong, the company said in a statement.
It entered the Brazilian market in 2010 and already operates transmission lines in the states of Rio de Janeiro and Sao Paulo.
It runs 10,000 kilometers (6,213 miles) of power transmission lines in Brazil and has another 6,000 kilometers under construction, the company said.
CPFL is the largest private power company in Brazil and the country's third largest utility provider overall.
It supplies power to 24 million people and is a leading supplier of renewable energy, it said in a statement announcing the deal.
The Chinese firm said it aims to extend its presence in electricity transmission and distribution in Brazil as well as generation from renewable sources.