Chinese state-owned power company China Three Gorges Corp is purchasing controlling stakes in three energy businesses in Brazil for up to 1.9 billion reais (US$538 million). The seller is Sao Paulo-based Triunfo Participacoes e Investimentos SA.

The Brazilian firm said on Tuesday it would sell its stakes in Rio Verde Energia, Rio Canoas Energia and Triunfo Negócios de Energia to a subsidiary of the Chinese group called China Three Gorges Brasil Energia Ltda.

The deal involves a payment of 970 million reais plus 770 million reais in debt. China Three Gorges might pay an additional 148.5 million reais pending further examination of the deal, according to Triunfo’s statement.

The acquisition is still subject to the approval of the Brazilian and Chinese authorities, Triunfo added.

Reuters reported the deal would give China Three Gorges control over two hydroelectric dams in Brazil’s central and southern regions, as well as a local energy trading company.