Feb 21 (Reuters) – Brazilian electricity company Companhia Energética de Minas Gerais Cemig is considering buying a stake in Colombia’s third-biggest power generator Isagen SA, the latest step by Brazil’s second-biggest power utility to expand in fast-growing markets and segments.

The potential acquisition of a stake in Isagen would be consistent with Cemig’s strategy of “balanced growth in power generation, transmission and distribution, either through organic growth or through mergers and acquisitions,” according to a securities filing late on Thursday.

Colombia’s government has been actively pursuing the sale of its 56.7 percent stake in Isagen. Colombian Finance Minister Mauricio Cardenas met with U.S. and European power companies in Davos last month to discuss terms of a potential deal.

The Belo Horizonte, Brazil-based company, majority-controlled by the state of Minas Gerais, is seeking to develop new generation assets after rejecting a Brazilian government offer in 2012 to cut rates in exchange for a renewal to its concessions to operate hydroelectric plants. Targets for growth include renewable energy and potential acquisitions outside Brazil, analysts said.

According to Cemig’s statement, Isagen controls six generation units with a total capacity of 2,212 megawatts hour. Colombia expects to fecth $2.5 billion from the sale of the government’s stake in the company, Cardenas said.

(Reporting by Silvio Cascione; Editing by Guillermo Parra-Bernal and W Simon)