State Grid Signs SPA to Acquire Chilean Utility CGE

State Grid signed a share purchase agreement to acquire a 96.04% stake of the Chile-based Compañía General de Electricidad (CGE) from Spanish natural gas and power company Naturgy Energy Group at an online signing ceremony held on November 13, 2020. Liu Zehong, Executive Vice President of State Grid, addressed the ceremony.

Executive Vice President Liu noted that State Grid regards Chile as a key destination of overseas investment as the country boasts political and economic stability, a sound legal system, and a high sovereign credit rating. As a long-term investor in energy sector, State Grid is to leverage its strengths in technology, management, construction, and capital to facilitate the future growth of CGE, and help it improve grid operation and services so as to provide stable power supply to the Chilean people and economy.

CGE is the largest power distribution company and the second-largest transmission company in Chile, with 3,500 km transmission lines and 64,738 km distribution lines, serving 3 million domestic households. China and Chile are comprehensive strategic partners with stable progress in bilateral relations. As another contribution of State Grid to the Belt and Road Initiative, the deal is expected to optimize State Grid’s overseas portfolio, forge a synergy between assets in Chile, and enhance its influence in South America.

State Grid and Naturgy are to conclude the transaction after completing domestic and overseas approval procedures.

Up to date, State Grid has invested in and run 12 backbone energy networks in Hong Kong SAR and 8 countries, i.e. the Philippines, Brazil, Portugal, Australia, Italy, Greece, Oman, and Chile.

Also present at the signing ceremony were Zhu Guangchao, Deputy CTO and Director General, Department of International Cooperation of State Grid, and top executives of State Grid International Development Co., Ltd. and Naturgy.