Brazil power: Spain out, China in

China State Grid to Buy Brazilian Assets

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.

2 Responses to “Brazil power: Spain out, China in”

  1. jlh Says:

    Time for that old Pink Floyd favorite: You’re Just Another BRIC in the Wall.

    One analyst recently sees signs that the BRICs, like the EU, are “crumbling,” and the only sign of (very subdued) steady progress is in the US–despite our president’s best efforts. If true, this is an alliance of losers.

    And how ironic if the capitalist energy that cannot be easily overcome should cause enough of a recovery for the president to argue that he saved us!

  2. The Carnival of Latin America and the Caribbean | Fausta's Blog Says:

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