Brazil power: Spain out, China in
State Grid Corp. of China said Tuesday it agreed to buy seven high-voltage electricity transmission assets in Brazil from Spanish construction firm Actividades de Construccion y Servicios SA ACS.MC -2.06% and its subsidiaries for 2.04 billion real ($1 billion), including debt.
The acquisition marks State Grid’s second investment in Brazil and its fourth major investment overseas, and is the most recent in a string of deals in which a European company has looked to exit an investment amid the debt troubles facing the continent.
State Grid’s latest deal involves seven electricity-transmission assets spanning eight states in Brazil, with a total length of about 2,792 kilometers. A majority of the assets to be acquired are currently in operation, with the remainder expected to begin commercial operation by the end of this year, the company said in a statement.
This continues the trend where China expands its reach in our hemisphere; this time, however, China is not acquiring a raw materials company.