GreenergyDaily

Jun. 4, 2026

China Southern Power Grid has abandoned efforts to gain control of Chile's largest power transmission company, Transelec, amid growing scrutiny of Chinese investments in strategic sectors across Latin America.

Negotiations between China Southern Power, which already holds nearly 28% of Transelec, and Canadian pension funds owning the remaining stake have ended, Bloomberg reported, citing people familiar with the matter.

Canada Pension Plan Investment Board, British Columbia Investment Management Corp. and Public Sector Pension Investment Board hold roughly 72% of Transelec.

The potential transaction had been under discussion for about two years and could have been valued at more than $4 billion.

Disagreements over valuation and deal structure weighed on the negotiations, but broader geopolitical concerns also played a role. The Trump administration has stepped up efforts to encourage Latin American governments to scrutinize Chinese investments in sectors deemed critical to national security and supply chains.

However, China Southern Power may resume its pursuit of Transelec if conditions shift, according to one of the people.