Chinese companies plan new investments in Brazil

28 July 2016

Chinese companies are expected to make major investments in the coming months in Brazil, especially in infrastructure, including electricity transmission grids and raw materials, Brazilian newspaper O Estado de São Paulo reported.

Assets of Electrobás, such as subsidiaries Electrosul and CELG, are being offered to various investors, both in China and other countries. Other businesses in the sector, such as the Santo Antonio Hydroelectric Power Station on the Madeira River, which has among its shareholders the Odebrecht group, are also up for sale.

China State Grid and China Three Gorges (CTG), both state groups, are seen as buyers of various assets in Brazil, according to sources contacted by the newspaper.

CTG was the latest to arrive in Brazil in 2013, having already bought stakes in several hydroelectric facilities and recently acquired the Jupiá and Solteira plants from Cesp.

A delegation of the Brazil-China Chamber of Commerce and Industry (CCIBC) is currently in China and due to return to Brazil in early August, in order to attract Chinese investment to Brazil, which is selling what are considered to be attractive businesses.

Charles Tang, president of the CCIBC, told the newspaper that there are Chinese groups that do not yet have investments in Brazil and said that the “aim of our movement is precisely to make known the potential business that Chinese companies and groups can do in Brazil.” (macauhub/BR/CN)