China's State Grid International Development Ltd. is set to acquire a controlling stake worth $1.8 billion in CPFL Energia SA, Brazil's biggest power distributor announced on Friday.

According to CPFL in its securities filing, Camargo Correa SA, one of the biggest private conglomerates in Brazil that cover engineering, real estate, textile, and shipbuilding, is selling its 23 percent stake.

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China State Grid, which is the world's largest utility, is poised to pay 25 reais (51.29 yuan; $7.72) for each of Camargo's 234 million CPFL shares.

Meanwhile, the deal is still to be finalized; thus, other interested shareholders still have the chance to either outbid the Chinese company or sell their stakes on equal terms, which could further increase the size of the deal, Camargo Correa said. The proposal is still subject to the Brazilian antitrust regulators' approval.

Camargo Correa has been under investigation for a corruption case involving state-controlled oil company Petrobas. This affected its operations and has led to questions about the company's ability to pay its debts. Now, the company is trying to sell its assets to resolve its financial crisis.

On the other hand, China's State Grid plans to expand more than the power transmission assets it is already managing in Brazil.

In a separate deal, China's Three Gorges Corp has announced that it is taking over two of the largest hydroelectric dams in Brazil.

TagsChina State Grid, Camargo Correa, CPFL Energia