STATE Grid Corp. of China will pay 2.57 billion euros (US$3 billion) for an electricity network company in Chile, its first overseas deal in almost a year and a move that resumes its expansion abroad.

The Spanish natural gas and power company Naturgy Energy Group SA said it agreed to sell its 96 percent stake in Chilean electricity networks unit Compania General de Electricidad SA. The deal will give the Chilean assets an enterprise value of 4.3 billion euros and Naturgy a 400 million-euro gain.

Chinese energy companies have strengthened their presence in Latin America in the last few of years with a wave of investments that extend to logistics, services and telecommunications companies.

State Grid’s investments in Brazil total US$12.4 billion, or 60 percent of the company investment’s outside China, a company official said last year.

Among its investments in the region, the Chinese company acquired the largest Brazilian private energy company, CPFL Energia SA, in 2017, and is responsible for building the transmission network for the giant hydroelectric plant Belo Monte. State Grid has also acquired Sempra Energy’s assets in Chile this year.

Naturgy chairman Francisco Reynes has been under pressure from shareholders to deliver steady returns to the utility’s investors. (SD-Agencies)