China State Grid buys Brazil power as­sets for $1b

The Pak Banker - - International -

SHANG­HAI: China's biggest elec­tric­ity com­pany, State Grid, says it is pay­ing $989 mil­lion for seven Brazil­ian power com­pa­nies and their trans­mis­sion lines as it seeks to ex­pand over­seas.

The in­vest­ment in­cludes a 30-year con­ces­sion to op­er­ate the Brazil­ian power grids that can be re­newed for 20 years once it ex­pires, ac­cord­ing to a no­tice seen Wed­nes­day on the web­site of the Chi­nese govern­ment agency that man­ages state as­sets. The deal marks a fur­ther ex­pan­sion of State Grid into over­seas mar­kets fol­low­ing a $3.9 bil­lion, 25-year con­tract with the Philip­pines to run that coun­try's power grid.

Though not well known abroad, State Grid says it is ranked eighth among the For­tune 500 and op­er­ates power lines across 26 of China's 32 prov­inces and re­gions. It is among many sta­te­owned busi­nesses that are heed­ing the govern­ment's call to "go out" by in­vest­ing over­seas.

The in­vest­ment in Brazil will suit the "strate­gic co­op­er­a­tion" be­tween the two coun­tries and is ex­pected to yield an av­er­age an­nual profit of $110 mil­lion, State Grid said. -Ap

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