Shanghai Electric negotiates acquisition of power transmission project in Southern Brazil

25 October 2017

A subsidiary of Chinese group Shanghai Electric has submitted a proposal to take control of a power transmission project in southern Brazil, the Brazilian National Electric Energy Agency (Aneel) told Reuters.


Located in the state of Rio Grande do Sul, the project requires an investment of 3.3 billion reais (US$1 billion) and had originally been granted to Eletrosul, a unit of Brazilian electricity company Eletrobras.


“(Shanghai Electric and Eletrosul) have made a proposal that we are analysing […] point by point,” said José Jurhosa, Director of Aneel, in statements

cited by the Forum Macau website, adding that the acquisition now depended on Shanghai Electric accepting the conditions imposed by the regulatory agency.


In June the subsidiary of Shanghai Electric signed a non-binding agreement with Eletrosul to buy a majority stake in an electrical transmission project of the Brazilian group in Rio Grande do Sul, but is expected to travel back to Brazil to close the deal.


According to the same source the agreement stipulates that the Chinese company will transfer 25% of the shares to Eletrosul.


The deal is another acquisition by China in the energy sector in Brazil.


State Grid Corp of China is currently the second-largest energy transmission company in Brazil and China Three Gorges Corp. is the second biggest company in Brazil in the energy production sector, according to figures from the Chinese embassy in Brasilia. (macauhub)