China’s State Grid Acquires Chilean Utility Company Compania General de Electricidad for $3.04 Billion

Paul, Weiss advised China-based utilities company State Grid International Development Limited in its $3.04 billion acquisition of Compania General de Electricidad S.A. (CGE), a publicly traded corporation, from Spain’s Naturgy Energy Group S.A. The deal includes Naturgy Energy’s 96.04% holding in CGE, the largest distribution network and second-largest transmission network in Chile. Fiscalía Nacional Económica, Chile’s antitrust authority, has unconditionally approved the transaction.

The acquisition marks one of the largest Chinese investments in Chile, as well as State Grid’s second-largest overseas investment since the establishment of its international business. State Grid now owns two of the largest electricity distributors in Chile and serves approximately 45% of the domestic market via its acquisition of CGE, combined with its June 2020 acquisition of Chilquinta Energía S.A., a transaction on which Paul, Weiss also advised.

The Paul, Weiss team included corporate partner Judie Ng Shortell and antitrust counsel Marta Kelly.