Chinese state company State Grid sets up subsidiary in Brazil

14 December 2010

Shanghai, China, 14 Dec – Chinese state electricity distribution company State Grid has set up a subsidiary in Brazil to coordinate the activities of the seven electricity transmission companies it acquired from Spain’s Elecnor, Isolux Corsan and Cobra at the beginning of the year.

In an internal statement, cited by the Dow Jones news agency, State Grid said that the subsidiary – State Grid Brazil Holding Ltd. – would also serve as a platform for the Chinese company to be involved in other investments in the Brazilian energy sector.

The seven companies at the time of acquisition has a concession of 3,000 kilometres of transmission lines, and the deal was done for a total of 3.097 billion reals, which included a debt of 1.5 billion reals, taken on by the Chinese group.

State Grid is also looking into other opportunities in Latin America, including Argentina, Mexico, Colombia and Chile, as the company’s chairman, Chen Guoping has previously said. (macauhub)