China's biggest electricity company State Grid, says it is paying US$989 million for seven Brazilian power companies and their transmission lines as it seeks to expand business scope overseas.
The investment includes a 30-year concession to operate the Brazilian power grids that can be renewed for 20 years once it expires, The Associated Press reported on Wednesday.
The deal marks a further expansion of State Grid into overseas markets following a US$3.9 billion, 25-year contract with the Philippines to run its power grid, the report said.
Though not well known abroad, State Grid is ranked eighth among the Fortune 500 and operates power lines across 26 of China's 32 provinces and autonomous regions. It is among many state-owned businesses that are heeding the government's call to "go out" by investing overseas.
The investment in Brazil will suit the "strategic cooperative relationship" between the two major emerging economies, and is expected to yield an average annual profit of US$100 million, State Grid said.
Brazil relies heavily on power from Itaipu, the world's second-largest hydroelectric dam after China's Three Gorges Dam.
People's Daily Online / Agencies
The investment includes a 30-year concession to operate the Brazilian power grids that can be renewed for 20 years once it expires, The Associated Press reported on Wednesday.
The deal marks a further expansion of State Grid into overseas markets following a US$3.9 billion, 25-year contract with the Philippines to run its power grid, the report said.
Though not well known abroad, State Grid is ranked eighth among the Fortune 500 and operates power lines across 26 of China's 32 provinces and autonomous regions. It is among many state-owned businesses that are heeding the government's call to "go out" by investing overseas.
The investment in Brazil will suit the "strategic cooperative relationship" between the two major emerging economies, and is expected to yield an average annual profit of US$100 million, State Grid said.
Brazil relies heavily on power from Itaipu, the world's second-largest hydroelectric dam after China's Three Gorges Dam.
People's Daily Online / Agencies