China Southern Power Is Said in Talks to Buy Chile’s Transelec

China Southern Power Grid Co. is in advanced talks to acquire a controlling stake in Chilean power transmission company Transelec SA, people familiar with the matter said, in what could be one of the biggest Chinese outbound deals this year.

China’s second-largest electricity network operator, which already holds nearly 28% of Transelec, is considering teaming up with Latin America-focused alternative asset manager Patria Investments Ltd. and a Chinese sovereign wealth fund to bid for the stakes held by three Canadian pension funds, the people said, asking not to be identified because the discussions are private.

A potential deal, which ...