Linklaters advises China Southern Power Grid on its first M&A transaction in Latin America

  • US$1.3bn acquisition of Brookfield Infrastructure's 27.8% stake in Transelec, the largest pure-play power transmission company in Chile.
  • This transaction reflects a growing trend of increasing China outbound investment into Latin America.

Global law firm Linklaters acted as lead international counsel for China Southern Power Grid (CSG) on its US$1.3bn acquisition of Brookfield Infrastructure's 27.8% stake in Transelec. Transelec is the largest pure-play power transmission company in Chile with over 10,000 kilometres of electricity lines serving approximately 98% of the Chilean population.

The Linklaters team was cross-jurisdictional and multi-practice. Led by Gilbert Li, Corporate Partner of Linklaters Hong Kong and Alberto Luzárraga, Corporate Partner and co-head of Linklaters’ Latin American practice (based between New York/São Paulo). The team was supported by counsel in Chile by Guerrero Olivos and in Peru by Rodrigo, Elias & Medrano.

Gilbert Li said: “We have previously advised CSG on its acquisition of 30% of the power station Castle Peak Power Company Limited so we are pleased to have been able to support CSG once again and on such a significant transaction in its investment strategy.”

Alberto Luzárraga commented: “The transaction demonstrates that the regulatory approval process for Chinese outbound investment does not need to be an obstacle, given the right consideration and preparation.  Chinese outbound is still of strong importance and we have certainly seen a growing number of outbound deals from Chinese SOEs into the Latin America region.”

Linklaters has been a trusted counsel to Chinese companies on their Latin America investments since 2010, having advised Wuhan Iron and Steel, Chery Automobile, Industrial and Commercial Bank of China, China Construction Bank, Jiuquan Iron and Steel, China-LAC Cooperation Fund, and China Merchants Port on their significant investments and acquisitions in the region.