China Southern Power Grid halted efforts to gain control of Transelec, Chile's largest power transmission company, following about two years of negotiations, Bloomberg News reported Wednesday.
The Chinese state-owned electricity enterprise, which already holds nearly 28% of Transelec, ended talks with Canadian pension funds owning the remaining 72% stake, the report said, citing people familiar with the matter.
The sources said the potential transaction, valued at over $4 billion, faced disagreements over valuation and structure, Bloomberg reported.
However, the broader political environment also weighed heavily on the talks, as the U.S. urged Latin American governments to scrutinize Chinese investments in critical infrastructure, the sources reportedly said.
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