Beijing: State Grid Corp of China (SGCC) said it has taken over seven Brazilian power transmission companies with investments totalling nearly $1 billion, its second major overseas foray after buying Philippine transmission assets last year.
The acquisition was expected to bring $110 million in earnings annually, and was set to provide a gateway for Chinese electromechanical products into the South American market, SGCC said in a report on the website of the State-owned Assets Supervision and Administration on Tuesday.
The state-owned company will run power transmission assets including 16 500-kilovolt power lines totalling 3,173 kilometres and transformation stations in Brazil’s wealthy southeastern coast, and provide power services to Brasilia, Rio de Janeiro and Sao Paulo.
SGCC added that it had secured 30-year operating rights, which could be extended by another 20 years with the approval of the Brazilian power authorities.
SGCC was previously reported to have paid $1.7 billion for the assets.
In January 2009, a consortium led by the dominant Chinese grid operator paid $3.95 billion for a 25-year licence to run parts of the Philippine’s power transmission networks.